Bitcoin has significantly outpaced gold in recent weeks, highlighting a shift in institutional investor sentiment. Over the past month, bitcoin’s value has surged by more than 46%, while gold prices have declined by over 3%. This divergence underscores a growing preference for bitcoin as a high-growth investment, challenging gold’s long-held status as a dominant inflation hedge.
As of now, gold is trading just above $2,600 per ounce, down from its October record high of $2,787. In contrast, bitcoin has climbed from $68,000 to surpass $98,000 during the same period. Analysts attribute this trend to changing market dynamics driven by the U.S. election and institutional adoption of digital assets.
Deenar co-founder Maruf Yusupov points to Donald Trump’s recent election win as a catalyst for bitcoin’s rise. “Trump’s focus on tax cuts, tariffs, and crypto is driving interest in bitcoin as a modern alternative to gold,” Yusupov noted, emphasizing how bitcoin is reshaping traditional views on inflation hedges.
Nigel Green, CEO of the deVere Group, highlights that institutional interest in bitcoin has reached unprecedented levels. “Bitcoin is increasingly viewed as a hedge against inflation and a tool for portfolio diversification. The infrastructure supporting mass adoption continues to expand,” Green explained, suggesting that this momentum is likely to grow.
Fadi Aboualfa, Head of Research at Copper.co, observed a growing similarity in price trends between bitcoin and gold ETFs. He remarked, “The current trends indicate that both bitcoin and gold ETFs follow a similar pattern in price progression, differing only in scale and starting levels. This suggests shared market drivers and indicates that bitcoin may be cementing its position as a store-of-value asset alongside gold.”
Aboualfa added that the convergence of these trends demonstrates how bitcoin is increasingly viewed as a viable alternative to gold, particularly among institutional investors. As more capital flows into digital assets, bitcoin’s role in financial markets appears to be strengthening, marking a potential shift in how investors approach traditional inflation hedges.