Gold has surged to a new all-time high, surpassing $3,025 per ounce, marking an impressive increase of over 15% since the start of the year. In contrast, Bitcoin (BTC) has been struggling, down 10% year-to-date. This divergence in performance raises important questions about the current state of these two significant asset classes.
Several factors have contributed to gold’s rally. A notable increase in inflows into gold ETFs has played a crucial role, emphasized by gold’s longstanding reputation as a safe-haven asset amid geopolitical uncertainties. As investors seek stability, gold has again proven its worth in tumultuous times.
Additionally, the prospect of new tariffs under President Trump has added further pressure on U.S. equities, subsequently stoking demand for gold. With prices reflecting a 40% rise year-over-year, the momentum of gold’s current rally starkly contrasts with Bitcoin’s 16% increase.
Historically, the two assets have exhibited a tendency to move in opposition, particularly when gold enters a bull market. Despite occasional periods where both assets experience similar movements, they often exhibit significant divergence. Between 2019 and Q3 2020, for example, gold was on a strong upward trajectory while Bitcoin remained relatively stagnant, an occurrence that coincided with the onset of the COVID-19 pandemic.
Conversely, Bitcoin enjoyed a substantial bull run in 2021 while gold’s prices stagnated. In the following years, both asset classes faced pressure from rising global interest rates, yet they have recently rebounded in 2023 and 2024. Now, in 2025, we are witnessing yet another renewed separation between these two market stalwarts.
Charlie Morris, founder of ByteTree, has articulated his views on the current gold rally, labeling it as a “proper gold rush” reminiscent of the market dynamics seen in 2011. He notes, “Gold above $3,000, silver above $24, and gold stocks gaining momentum—it struck me that the crypto crowd has never witnessed a true gold rush. The last time this happened was in 2011, when Bitcoin was just emerging at $20. They will now.”
