Safe-haven status for gold affirmed, while analysts foresee a potentially brighter route for Bitcoin
In the Spotlight
- Gold vs. Bitcoin - The tale of two assets takes a new twist as gold surges ahead in recent days, surpassing Bitcoin's gains.
- Safe Haven Swing - Investors are favoring gold, the traditional safe haven asset, over Bitcoin amid economic uncertainties and fears of inflation.
Gold Rush, Bitcoin BustBitcoin's downslide continues as it falters in favor of gold, the undisputed champion of safe-haven assets. The recent trend seems to restore the paths that these assets have traversed for much of 2025, with gold's gains outpacing those of Bitcoin.
"Gold proved its worth this year. Even the staunchest Bitcoin enthusiasts must admit that," Bloomberg ETF analyst Eric Balchunas told Decrypt. Gold's roaring success, especially in Q1, left a mark on the crypto community.
Tariff-Fueled TrendWith escalating trade wars raising alarms of inflation and economic slumps, both gold and Bitcoin have caught the spotlight. However, gold has soared a remarkable 27%, while Bitcoin has managed a modest 12% year-to-date. This shift was visible earlier this month when Bitcoin hit an all-time high of $112,000, only to plummet over 6%, while gold hovers near its peak.
Goldenday, Cryptonight?Though gold's golden run isn't quite over, analysts have suggested that Bitcoin may harbor the brighter prospects. Firms in traditional finance are increasingly making their mark in the crypto space, responding to investor demand for this novel asset class.
For instance, Bitcoin funds have amassed approximately $7.3 billion since late April, while gold ETFs have experienced outflows totaling around $4.9 billion. Spot Bitcoin ETFs, approved by the SEC last year, boast impressive management figures, with BlackRock's iShares Bitcoin Trust (IBIT) leading the pack, holding nearly $70 billion of the total $127 billion.
"Since IBIT launched, it's still doubling gold," Balchunas stated. "Gold may have won the battle, but Bitcoin is still winning the war."
Christopher Wong, FX strategist at Oversea-Chinese Banking Corp, added, "The U.S.'s downgraded credit rating adds to doubts over the U.S. dollar's status as a safe haven. In times of economic anxiety, gold's standing as a reliable portfolio diversifier remains unrivaled."
Edited by James Rubin
Editor's note: This story was updated to correct attribution of a comment.
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- The tale of two assets, Bitcoin (BTC) and gold, has taken a new twist with gold surpassing Bitcoin's gains, making it the undisputed champion in recent days.
- Gold ETFs have experienced outflows while Bitcoin funds have seen an influx of approximately $7.3 billion since late April, suggesting a growing interest in cryptocurrency investments.
- Spot Bitcoin ETFs, such as BlackRock's iShares Bitcoin Trust (IBIT), hold impressive management figures, with IBIT alone holding nearly $70 billion of the total $127 billion.
- The traditional financial sector is increasingly investing in the crypto space, indicating a potential bright future for Bitcoin and other cryptocurrencies (e.g., Ethereum - ETH).
- Despite gold's current success, analysts such as Eric Balchunas and Christopher Wong argue that Bitcoin still holds the upper hand in the long term, given its potential for growth and diversity in the realm of finance and technology.
