- Bitcoin declined by 32% relative to gold in 2025 amid document inflows into Gold ETFs
- Bloomberg’s Eric Balchunas believes BTC ETFs shall be 3x Gold ETFs’ dimension quickly
In line with long-time Bitcoin [BTC] critic Peter Schiff, the world’s largest cryptocurrency has been in a “stealth bear market” relative to gold. Schiff noted that one BTC fetched fewer ounces of gold (24% much less) now, in comparison with the crypto’s peak worth in 2021.
“One Bitcoin now buys 27.7 ounces of gold. At its peak in 2021, one Bitcoin bought 36.3 ounces of gold…In terms of gold, the price of Bitcoin has fallen by 24%. So Bitcoin has been in a stealth bear market for the past three and a half years.”
Bitcoin lags behind gold
Value stating, nonetheless, that some analysts rapidly identified that Schiff’s timeframe was selective to suit his bias. Each arguments are proper although. When zoomed in on the 10-year window, Bitcoin has outperformed gold by over 12,000%. During the last two years alone, BTC has jumped by 200% in opposition to gold.
Nevertheless, in 2025, BTC misplaced 32% of its worth relative to gold, slipping from 41 to twenty-eight on the BTC/gold chart. Merely put, gold has been a comparatively higher retailer of worth in Q1 2025. Particularly after the cryptocurrency erased ‘Trump pump’ beneficial properties whereas gold hit a brand new excessive of $3k.
Supply: BTC vs gold efficiency (TradingView)
In truth, the dimensions of institutional buyers’ curiosity in gold, relative to BTC, is clearly evident too.
In line with the most recent knowledge, Gold ETF’s market cap surpassed the collective dimension of U.S Spot BTC ETFs. Bloomberg analyst Eric Balchunas linked the “flipping” to gold’s 12% spike in 2025.
“The Empire strikes back: Gold ETFs have reclaimed the asset crown over bitcoin ETFs thanks to 12% gain this year.”
Supply: Bloomberg
Even so, Balchunas maintains that BTC ETFs will triple gold ETFs in the long term, suggesting extra upside potential for Bitcoin relative to gold.
“Despite the legit win for gold I still think BTC ETFs will grow to triple that of gold ETFs but as I’ve said repeatedly it aint gonna be a smooth path, but rather two steps forward, one step back.”
Right here, it needs to be identified that the BTC Pearson correlation indicator revealed that the “digital gold” decoupled from its bodily various in early February. In early 2025, the cryptocurrency has been underneath the whims of Trump’s tariff wars, alongside U.S equities.
Supply: The Block
Standard analysts Peter Brandt has been siding with Balchunas and his opinions although. He projected final 12 months that BTC would outperform gold by over 120%, citing bullish patterns on the BTC/gold chart.
