Gold Outperforms Bitcoin as Safe Haven Asset Amid Geopolitical and Economic Uncertainty in 2025
In 2025, gold has demonstrated a strong rally, driven by expectations of rate cuts and heightened geopolitical risks, while bitcoin has struggled to maintain its key psychological levels.
Gold has increased by more than 70% this year, with silver up about 150%, and platinum reaching record levels as investors seek hedges against geopolitical volatility and long-term currency risk.
Despite bitcoin also gaining in 2025, its performance has been affected by market positioning including leverage-led trading and macroeconomic factors, leading it not to behave like "digital gold." The macroeconomic environment characterized by volatile bond yields, fluctuations in the dollar, and risk-off sentiment has tended to favor gold as a safe-haven asset.
David Miller, CIO at Catalyst Funds, highlighted that gold has had a record year with over 60% gains, maintaining its status as an institutional reserve asset, whereas bitcoin's trajectory has differed.
Supporting this trend, World Gold Council data shows that gold-backed ETF holdings have risen every month this year except May, with the SPDR Gold Trust holdings increasing more than 20% in 2025.
Goldman Sachs forecasts that gold prices could rise toward $4,900 per ounce in 2026 under its base case scenario, with risks skewed to the upside.
The ongoing market dynamics have contributed to a framing debate over whether bitcoin qualifies as digital gold, with current evidence showing gold outperforming bitcoin as a safe-haven investment.
