Gold Reasserts Safe Haven Status, But Bitcoin's Path May Be Brighter: Analysts
David ClarkeGold has outperformed Bitcoin in recent days and for much of 2025, although Bitcoin's prospects are likely brighter, say analysts.[...]
Navigating the Crypto-Gold Landscape: A Shift in Investor Sentiment
In a recent turn of events, Bitcoin, the world's most valuable cryptocurrency, has seen a decline as investors pivot toward the traditional safe haven of gold. This shift has realigned the trajectories of both assets, with gold's gains outpacing Bitcoin's for much of 2025.
"There's no denying it, gold had a great year. Especially during the tariffs—even if you're a hardcore Bitcoiner, you have to respect what gold did in the first quarter," Bloomberg ETF analyst Eric Balchunas told Decrypt.
The Trump administration's trade war has stoked fears of rising inflation and a global economic slowdown, drawing attention to both assets. Gold has surged an impressive 27%, while Bitcoin has risen roughly 12% year-to-date.
This trend briefly reversed earlier this month when Bitcoin hit an all-time high near $112,000 and gold retreated from its record above $3,440 per ounce. However, Bitcoin has since fallen more than 6% from its peak, while gold remains near its recent high.
Christopher Wong, FX strategist at Oversea-Chinese Banking Corp, argues that the "gold story is not exactly over," particularly after Moody's downgraded the U.S.'s last top credit rating. "This adds to doubts over the U.S. dollar as a safe haven and should structurally weigh on the dollar over time," he said. "In times of economic uncertainty and a lack of safe havens, gold's appeal as a true safe haven stands out and remains a reliable portfolio diversifier."
Yet some analysts believe Bitcoin may have stronger long-term prospects as traditional finance firms increase their involvement to meet investor demand. James Butterfill, CoinShares Head of Research, noted that Bitcoin funds have added about $7.3 billion since late April, while gold ETFs have shed roughly $4.9 billion.
Despite gold's recent resurgence, the future remains uncertain. "Since IBIT launched, it's still doubling gold. To me, it's like gold won the third set of a tennis match it's losing. Gold won the battle, [but] Bitcoin is still winning the war," Butterfill said. He added, "Over the last five weeks, the flows data suggest BTC is winning."
