Despite a fierce sell-off in cryptocurrencies, J.P. Morgan strategists have argued that, in the long run, Bitcoin holds greater investment potential than gold.

The view sharply contrasts with the prevailing consensus on Wall Street, where Bitcoin has long been seen as a speculative alternative to gold.

J.P. Morgan’s shift in stance positions Bitcoin not just as a digital asset but as a serious contender for inclusion in long-term investment portfolios, potentially replacing gold as a store of value.

Bitcoin, which emerged during the global financial crisis and is often regarded as a potential alternative to the U.S. dollar, is now being viewed through a new lens by J.P. Morgan. The bank argued that while gold remains a trusted hedge in times of economic instability, Bitcoin’s long-term appeal is more pronounced, especially in an environment where digital assets continue to gain traction.

Analysts have warned, however, that Bitcoin’s volatility could continue to pose risks for short-term investors, and its value remains highly susceptible to regulatory developments and market sentiment swings.