Bitcoin Trails Gold and Copper as Fear and AI Lift Tangible Assets in 2025
In 2025, gold and copper have significantly outperformed Bitcoin, reflecting a shift towards tangible assets amid economic uncertainty and the rise of artificial intelligence (AI) themes.
Gold surged about 70% year-to-date, reaching a record price above $4,450 per ounce. This rally was supported by central banks purchasing 254 tons of gold from January to October, highlighting its status as a safe-haven asset. Similarly, copper increased roughly 35% year-to-date, driven by demands from electrification, digital infrastructure, and geopolitical tensions, also hitting fresh highs like gold.
In contrast, Bitcoin has declined about 6% year-to-date, trading around $87,531. Unlike gold and copper, Bitcoin has not attracted evident haven demand or AI-driven investment, lacking sovereign interest and ETF-led inflows. Analysts note that Bitcoin's narrative as "digital gold" has failed to convince broad institutional investors, with limited new capital flowing into passive crypto exposures.
U.S. equities and fixed income markets show a mixed performance, with the S&P 500 up approximately 17%, Nasdaq rising 21%, the 10-year Treasury yield falling by about 9%, and the U.S. dollar index declining roughly 10%. The copper-to-gold ratio has fallen about 20% to its lowest level in more than two decades, signaling a late-cycle environment influenced by AI and complicated fiscal and trade headwinds.
Overall, the market trend exhibits a flight to tangible assets such as gold and copper, as investors express concerns over fiscal stability and favor AI-driven growth themes. This contrasts with underperformance in fiat- and paper-valued assets including Bitcoin, which awaits significant policy shifts or ETF adoption to spark a sustained rally.
