In the global financial market, where assets vie for the title of “best safe haven,” gold and Bitcoin are locked in fierce competition, revealing radical shifts in the risk appetite of both large and small investors.
Although the favored cryptocurrency (Bitcoin) has outperformed gold by more than nine times over the past 5 years, 2025 holds a bombshell: gold is poised to surge ahead, sparking a wave of unexpected envy among crypto enthusiasts!
Gold shines in times of chaos
In this year’s race, gold appears to be the undisputed leader. Since January, the precious metal has surged by a remarkable 45%, fueled by escalating global turmoil and inflation eroding the value of fiat currencies.
In contrast, Bitcoin’s rise has barely exceeded 20%, a gap that has raised questions about whether the digital gold has lost its luster.
Geopolitical chaos
This strong performance of gold is no accident; central banks and pension funds around the world, burdened by government deficits and geopolitical turmoil, are pouring gold into the historically stable market.
Reports indicate that central banks’ total gold holdings are poised to surpass their holdings of US Treasury bonds for the first time since the mid-1990s.
The comparison between gold and Bitcoin rests on solid philosophical ground: both are scarce, immune to inflation and excessive government “money printing,” and both appeal to “rebels” who question the future of paper currencies.
Even Satoshi Nakamoto, the enigmatic creator of Bitcoin, referenced Roosevelt’s 1933 decree banning the possession of gold when he launched his currency.
Financial cover
Gold trades as a classic haven, shining when fear prevails and investors’ appetite for risk wanes. It serves as a “strong anchor” in a turbulent sea of markets.
Gold’s immense liquidity and regulatory advantages make it the easiest and most suitable choice for central banks and large pension funds.
In China alone, the number of gold jewelry owners (over 81% of the population) exceeds the total number of Bitcoin owners worldwide (estimated at 295 million).
Technology stock
Despite its reputation as a haven, Bitcoin primarily operates as a technology asset. Since 2017, Bitcoin has moved more rapidly with the tech-heavy Nasdaq 100 index, with a correlation of 0.32, while its correlation with gold was only 0.09.
This suggests that Bitcoin rises with growth stocks and falls during technological downturns, rather than global monetary crises.
Lawrence W. Lepard, founder of Equity Management Associates, believes the world is heading toward what Austrian economists call a “crack-up boom”—a rush by investors to tangible assets due to excessive money printing.
According to Lepard, gold is currently benefiting early because Bitcoin still lacks broad institutional acceptance and is often slow to respond to macroeconomic shocks, but when it does move, it swings wildly.
