While Bitcoin struggles to maintain key levels, gold is hitting new highs, reigniting a debate that crypto investors have never fully settled on. If Bitcoin is supposed to be digital gold, this is the kind of tape it is meant to capture. That is not the case at this time.
This question is even greater because while gold is rising on interest rate cut expectations and geopolitical risks, Bitcoin has struggled to maintain key psychological levels and remains susceptible to the same forces that tend to hit stocks and other risk assets.
Gold is up more than 70% this year, and the other precious metal, silver, is up about 150%, with both on their biggest annual rally since 1979.
Platinum also rose to record levels, extending gains across precious metals as investors returned to the category as a hedge against geopolitical volatility and long-term currency risks.
Part of what is holding Bitcoin back is positioning. The market is still digesting long, leverage-driven trades, with each rally over the past week seeing quick profit taking.
Macros are also tricky. Even if traders expect a rate cut, Bitcoin tends to require clearer conditions for risk-taking, as well as a more flexible policy path. Bond yields are volatile, the dollar has soared, and markets have repeatedly shifted into a “protect capital” mood. Usually this helps with gold first.
David Miller, chief investment officer at Catalyst Funds and portfolio manager of the Strategy Shares Gold Enhanced Yield ETF, said the disconnect is difficult to ignore.
“Gold has had a record year, rising over 60%. But so has Bitcoin. There are still situations where it’s clearly not digital gold,” Miller said, adding, “Gold could have a record year and Bitcoin could fall in the same year.”
Miller said Bitcoin could still make sense in a portfolio over the long term, especially as a hedge against fiscal expansion and currency depreciation. However, he argued that gold still plays a different role as it is already treated as a reserve asset by central banks.
“The role of gold that Bitcoin will never be able to play is to serve as a real reserve asset to replace currency,” Miller said. “Bitcoin is really retail, whereas gold is very institutional.”
World Gold Council data shows holdings in gold-backed ETFs have increased in every month this year except May, showing consistent accumulation rather than a temporary spike in trading. The largest gold ETF, State Street’s SPDR Gold Trust, increased its holdings by more than 20% in 2025.
Several Wall Street banks also maintain a bullish outlook for next year. Goldman Sachs expects the risk to be skewed higher, with a base case scenario in which prices could rise towards $4,900 an ounce in 2026.
