Gold has hit a record $3,000 per ounce, attracting investors amid market corrections and economic uncertainty. Bitcoin, often called "digital gold," is seen by many as a superior hedge against inflation and a store of value due to its fixed 21 million supply, decentralization, and resistance to government seizure. However, recent market performance challenges that view.
While Bitcoin's scarcity and borderless nature make it unique, its correlation with equity markets has weakened its role as a recession hedge. Bitcoin ETFs, like iShares Bitcoin Trust (IBIT), have outperformed gold ETFs in bullish markets but underperformed in downturns, leading investors to flock to gold for safety.
In 2022, Bitcoin lost 65% of its value during a market decline, reinforcing gold’s reliability over its 4,000-year history. Unless Bitcoin decouples from stock markets, gold remains the superior recession hedge in 2025.