Gold Soars, Bitcoin Stalls — Is 'Digital Gold' Losing Its Shine?

Bitcoin’s “digital gold” narrative is under renewed scrutiny as real gold soars to fresh highs while bitcoin struggles to hold key levels. The divergence is sharpening a debate crypto investors never fully settled: if bitcoin is supposed to be a store of value like gold, this is the kind of market environment it should be winning — but it isn’t. Why gold is winning now Gold has ripped higher this year — up more than 70% — driven by expectations of central-bank rate cuts and renewed demand as a geopolitical hedge. Silver has outpaced even that, rising roughly 150%, and platinum has hit record levels, putting precious metals on track for their strongest annual gains since 1979. Investors are rotating back into metals to protect against geopolitical volatility and long-term currency risk. What’s holding bitcoin back Several forces are capping bitcoin’s upside. Market positioning remains fragile after a long stretch of leverage-led trading: rebounds are repeatedly met with quick profit-taking. And on the macro front, bitcoin’s rally needs more than just the prospect of lower rates — it typically requires clear, sustained risk-on conditions. With bond yields volatile, the dollar swinging, and markets repeatedly shifting into a “preserve capital” mentality, safe-haven flows have favored gold first. “Gold has had a record year,” says David Miller, CIO at Catalyst Funds and portfolio manager of the Strategy Shares Gold Enhanced Yield ETF. “You still have this situation where it’s clearly not digital gold.” Miller acknowledges bitcoin’s long-term case — particularly as a hedge against fiscal expansion and currency debasement — but stresses an important distinction: gold is already a reserve asset for central banks. “What gold does that bitcoin definitely can’t is serve as an actual alternative reserve asset to a currency,” he said. “Bitcoin is really a retail play, whereas gold is very much institutional.” Institutional demand and forecasts That institutional tilt shows up in flows. World Gold Council data indicate holdings in gold-backed ETFs rose every month this year except May, signaling steady accumulation rather than a short-lived trade. Holdings in State Street’s SPDR Gold Trust — the largest gold ETF — have climbed more than 20% in 2025. Major banks are bullish too: Goldman Sachs projects gold could approach $4,900 an ounce in 2026 under its base case, with upside risks. What this means for crypto investors For crypto holders, the message is twofold. First, bitcoin’s correlation with broader risk assets and sensitivity to market positioning leave it vulnerable in choppy macro regimes — even those that favor lower interest rates. Second, gold’s institutional backing and role as a reserve asset give it a different, sometimes more reliable, safe-haven status. That doesn’t negate bitcoin’s long-term potential, but it does underscore that the “digital gold” label remains more aspirational than proven in this cycle. Read more AI-generated news on: undefined/news