USDBitcoin Gains Safe-Haven Demand Edge Over Gold as ETF Outflows Hit $11B and Prices Drop 15%, JPMorgan Reports
Bitcoin Records Inflows While Precious Metals Face Position Unwinds and Liquidity Strains
TL;DR
- Bitcoin shows “safe-haven-like demand” with inflows while gold falls about 15%
- Gold ETFs lose nearly $11 billion in three weeks as silver reverses prior inflows
- JPMorgan cites institutional unwinding, rising rates, and a stronger dollar
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Bitcoin held steady during escalating geopolitical tensions tied to the Iran war, with JPMorgan analysts stating the asset displayed “safe-haven-like demand” as traditional hedges weakened. The report, released on March 26, 2026, said Bitcoin saw net inflows and rising activity levels while gold and silver experienced sharp outflows and position unwinds, describing a divergence in capital allocation during market stress. Crypto price movements referenced in the report align with COIN360 data, where Bitcoin hovered near $68,974 with a 0.16% daily change at the time of reporting.
JPMorgan analysts led by Nikolaos Panigirtzoglou wrote that Bitcoin “has held up better than gold and silver during the Iran war, with signs of inflows and rising activity,” contrasting with weakening flows in precious metals markets. The bank noted that institutional investors appeared to rotate away from metals, while Bitcoin’s momentum improved under the same conditions. The divergence occurred as traditional safe-haven assets came under pressure from macroeconomic shifts including rising interest rates and a strengthening U.S. dollar, which weighed on previously crowded positions.
Gold declined about 15% month-to-date after reaching earlier highs near $5,500, while silver, which had traded close to $120, also faced selling pressure as investors exited positions. JPMorgan said both assets had rallied to record levels earlier in the year, leaving them vulnerable to profit-taking once macro conditions shifted. The bank described the movement as “position liquidation once market conditions shifted,” pointing to a rapid unwind of previously accumulated exposure in metals markets.
Exchange-traded fund flows reflected the divergence in investor behavior, with gold ETFs recording nearly $11 billion in outflows over the first three weeks of March. Silver ETF flows reversed all inflows accumulated since the previous summer, erasing months of capital buildup. Analysts described these movements as part of a broader pattern of institutional unwinding and weakening liquidity conditions across traditional safe-haven assets during the period.
Bitcoin, by contrast, recorded net inflows over the same period, according to the report, as activity levels increased alongside price stability. JPMorgan said Bitcoin showed “steadier flows and improving momentum amid geopolitical stress,” contrasting with the volatility and capital exits observed in gold and silver markets. The report noted that this relative strength occurred during a period when both asset classes were exposed to the same macro and geopolitical drivers.
JPMorgan attributed the divergence to a combination of institutional repositioning and liquidity dynamics, stating that precious metals were affected by “institutional unwinding and weakening liquidity,” while Bitcoin benefited from continued inflows. The bank said the differing flow patterns between Bitcoin and metals markets coincided with broader shifts in investor positioning during heightened geopolitical uncertainty tied to the Iran conflict.
This article has been refined and enhanced by ChatGPT.
