Gold vs Bitcoin 2025: Central Banks Drive Gold Rally Over BTC
Gold vs Bitcoin has reversed in 2025. Gold has rallied over 50% since January, driven by record central bank demand. Global net purchases topped 1,045 tonnes in Q2, lifting central banks’ share of total demand from under 10% to 20%. Emerging buyers such as Poland, Kazakhstan and China led the surge amid geopolitical risks and falling dollar confidence.
Bitcoin (BTC) gained only 15% in 2025. Its correlation with Nasdaq tech stocks rose to 0.5, while the link to gold weakened. The approval of US spot Bitcoin ETFs has tied BTC performance to Fed policy and dollar liquidity, making Bitcoin behave more like a risk asset.
Despite the divergence, Gold vs Bitcoin remain complementary stores of value. Gold offers long-term stability. Bitcoin provides portability and rapid transfers in extreme scenarios. Traders may allocate between gold and Bitcoin to diversify portfolios. Watching central bank buying, dollar strength and ETF flows is key to navigating the Gold vs Bitcoin dynamic.
Bearish
Gold’s strong 50% rally in 2025, driven by record central bank purchases, highlights a shift in capital allocation away from Bitcoin. Bitcoin’s muted 15% gain and rising correlation to Nasdaq stocks underscore its growing status as a risk asset tied to Federal Reserve policy and dollar liquidity. In the short term, this dynamic may exert bearish pressure on Bitcoin prices as investors seek safe-haven assets. Over the long term, Bitcoin retains advantages in portability and may benefit if physical gold logistics constrain, but the current emphasis on central bank demand and dollar trends points to continued underperformance relative to gold. Therefore, the overall impact on Bitcoin is bearish.