Bitcoin vs Gold: A Historic Reversal Replayed
This week, Bitcoin once again gained the upper hand in the contest between 'digital gold' and 'real gold.' Since 2019, Bitcoin has significantly outpaced gold in price increase, and in early 2025, it achieved a historic surpass—what was once an unimaginable scenario has now become a reality.
After experiencing a period of volatility since March, Bitcoin rebounded strongly this Wednesday, regaining the $94,000 mark, demonstrating the market's strong recovery ability.
Volatility and Stability: The Game of Two Value Storage Logics
The biggest characteristic of Bitcoin is its high volatility. After reaching a peak of $109,000 in early 2025, BTC briefly fell below $75,000, followed by a strong rebound. Despite the severe fluctuations, according to Statmuse data, BTC's total return from April 2020 to April 2025 reached an impressive 1,212%.
In contrast, gold has always been known for its stability. This year, gold prices have risen about 28%, and yesterday it hit a historic high of $3,500 per ounce.
The Behind-the-Scenes Driver of Gold: Dual Forces of Safe-Haven and Central Bank Buying
The rise in gold is driven not only by market risk aversion but also by the continuous accumulation by global central banks. In the first quarter of 2025, the People's Bank of China alone purchased 95 tons of gold. Additionally, the weakening of the dollar under the influence of new trade policies from the Trump administration has further enhanced gold's appeal as a safe-haven asset.
Future Outlook: The Dance of Two Bulls?
Institutions are generally optimistic about the future performance of both assets. JPMorgan predicts that gold will break $4,000 per ounce in the second quarter of 2026, while Fundstrat co-founder Thomas Lee believes Bitcoin could reach $150,000 by the end of 2025.
The competition and resonance between Bitcoin and gold may continue to play out. Some choose stability, while others prefer high growth, but judging by Bitcoin's recent trajectory, it is once again posing a strong challenge to gold.
