Bitcoin's future may be brighter than its recent struggles suggest, according to JPMorgan analysts. The bank noted that despite bitcoin's divergence from traditional safe havens like gold and silver, its lower volatility could make it more attractive in the long run. ETF redemptions and futures liquidations are currently pressuring crypto markets, as bitcoin continues to underperform major risk assets. While gold surged over 60% in 2025 due to central bank buying and demand for safety, bitcoin faced monthly declines into 2026. This widening gap indicates a fading appeal for bitcoin as a hedge against market turmoil, according to the report. Analysts led by Nikolaos Panigirtzoglou highlighted that the recent selloff in risk assets, particularly tech, has negatively impacted digital assets as well. The bearish sentiment is evident in the contraction of stablecoin supply, signaling a lack of confidence among investors. Despite these challenges, JPMorgan remains optimistic about bitcoin's long-term potential. The report emphasized that while gold outperformed bitcoin since last October, its higher volatility actually enhances bitcoin's attractiveness. The analysts suggested that if bitcoin were to match gold's volatility, its price would theoretically need to rise to around $266,000, a target they deem unrealistic for this year. However, they believe this comparison underscores bitcoin's potential as a safe haven in the future. As negative sentiment shifts, bitcoin could regain its status as a viable hedge against catastrophic scenarios, similar to gold. This analysis paints a complex picture of bitcoin's role in the investment landscape, suggesting that patience may be key for investors looking for long-term gains. If conditions improve, bitcoin could once again align with gold as a go-to asset for safety and stability.