The ongoing battle between gold and Bitcoin, often referred to as "digital gold," has recently seen gold pull ahead in performance.
Gold has surged over 15% this year alone, with a 40% increase from the previous year, driven by factors like geopolitical tensions, ETF inflows, and tariff concerns in the U.S. In contrast, Bitcoin has been experiencing a downward trend due to similar factors impacting both assets.
Gold’s rise has reinforced its status as a safe-haven asset, but attention is now shifting towards a potential Bitcoin rally. Charlie Morris, founder of ByteTree, highlighted historical patterns that show the two assets often move in opposite directions. He noted that during periods like 2019-2020, gold rose while Bitcoin remained stable.
Conversely, in 2021, Bitcoin surged while gold stayed flat. Both assets saw growth in 2023 and 2024, but gold is currently leading the charge in 2025.
Morris attributed gold’s recent climb to several key factors: heightened demand due to geopolitical instability and economic concerns, significant interest in gold ETFs, and tariff discussions during the Trump administration that spurred increased interest in both gold and U.S. stocks.
Historically, gold and Bitcoin have not risen simultaneously. Gold has seen record highs while Bitcoin struggled, but patterns suggest that Bitcoin typically lags during gold’s bull runs, only to follow with its own rally afterward. This has been observed in cycles like those of 2019-2020 and 2021-2022.
Morris referred to the current rise in gold as a “real gold rush,” reminiscent of the 2011 boom. During that period, Bitcoin was still in its infancy, trading at just $20. Now, with Bitcoin’s potential poised for growth, investors are eager to see how the digital asset will respond to the surge in gold and other precious metals.
Michael Saylor, executive chairman of Strategy, has revealed that the company has acquired an additional 21,021 Bitcoin for approximately $2.46 billion, paying an average price of $117,256 per BTC.
As Bitcoin continues to consolidate above $100K, a critical market signal is flashing: BTC funding rates remain elevated, even as price action cools.
Billionaire investor Ray Dalio, founder of Bridgewater Associates, has suggested that a balanced investment portfolio should include up to 15% allocation to gold or Bitcoin, though he remains personally more inclined toward the traditional asset.
With Bitcoin hovering near $119,000, traders are weighing their next move carefully. The question dominating the market now is simple: Buy the dip or wait for a cleaner setup?