Bitcoin, a favorite among investors in the past five years, has surpassed nine gold and has attracted attention with a return of up to 1,000%.
However, in 2025 we changed the balance. Gold rose 45% since January, but Bitcoin only won 20% over the same period.
Central banks and pension funds are turning into gold as a safe haven for inflation, fiscal deficits and global uncertainty. Bitcoin has not performed poorly, but its performance is in line with high-tech stocks. Investors are questioning the metaphor of “digital gold.”
“Bitcoin is a dangerous asset and will do so until it proves not,” commented Edegilinsky, Direxion’s head of alternative investments. According to Egilinsky, gold is diversifying and playing a protective role in its portfolio, while Bitcoin is more prominent as a short-term trading tool.
Since 2017, the 30-day average correlation with Bitcoin’s tech-centric NASDAQ 100 index has been 0.32, but the correlation with gold remains at just 0.09. In other words, Bitcoin follows the rhythm of Silicon Valley, with high risk preferences and rises when markets become more demanding. Meanwhile, gold shines when the world is in chaos.
Lawrence Leppard, founder of Equity Management Associates, claims that quantitative easing has entered a period of inflated asset prices. According to Lepard, gold is dominant in this scenario, as institutional investors remain vigilant about the volatile nature of Bitcoin.
*This is not investment advice.
