The market capitalization of Bitcoin has risen to $2.34 trillion, equivalent to about 10.09% of gold's market capitalization of $23.22 trillion. Analysts note that for Bitcoin to surpass gold, its price would need to rise to $1.16 million per coin - an increase of about ten times from the current level.
Although that milestone is still far away, Bitcoin's relative performance has consistently outperformed gold in recent years:
5 years: BTC +892% compared to Gold +72%
3 years: BTC +387% compared to Gold +95%
2 years: BTC +304% compared to Gold +76%
1 year: BTC +104% compared to Gold +36%
However, as of now in 2025, gold still has a slight advantage, achieving a growth of 27.38% year-to-date, compared to Bitcoin's growth of 25.9%.
Supply Dynamics
One of the structural advantages of Bitcoin lies in its limited supply. The current annual issuance rate is 0.83%, and the programmed halving events every four years will further reduce this number over time. Gold's supply growth reaches 1.72% annually, driven by mining and recycling activities, and can expand if demand accelerates.
Outlook
As Bitcoin continues to erode gold's dominance as a hedge asset, the debate now centers around whether its digital scarcity and stronger long-term returns could one day push it past gold's benchmark of $23 trillion. Currently, Bitcoin has achieved a significant foothold - equal to 10% of gold's value - but crossing the next 90% will require unprecedented acceptance and investment inflows.
