Bitcoin News
By James Thorp
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Bitcoin (BTC) has faced significant challenges in 2025, with its price declining relative to gold.
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In 2021, one Bitcoin was worth approximately 36.3 ounces of gold. Fast forward to 2025, and that figure has dropped to just 27.
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Bitcoin’s performance relative to gold has raised a wider debate, with many wondering whether this signals a longer-term decline for the cryptocurrency.
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Over the past 10 years, Bitcoin has far outpaced gold in terms of returns. The cryptocurrency has surged over 12,000%, while gold has seen much more modest gains.
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Bitcoin’s price has dropped 32% relative to gold in 2025, slipping from 41 to 28 on the BTC/gold chart.
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Gold ETF Dominance and Institutional Interest
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One key factor in gold’s recent performance is the growing institutional interest in gold-backed exchange-traded funds (ETFs).
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Balchunas attributes this shift in favor of gold to a 12% spike in gold’s price this year, which has contributed to the resurgence of gold-backed ETFs.
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Market Dynamics: Bitcoin and Gold’s Divergence
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In early 2025, Bitcoin began to decouple from gold, with the cryptocurrency showing a stronger correlation to U.S. equities and external factors like Trump’s tariff wars.
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The Pearson correlation indicator, which measures the relationship between Bitcoin and gold, revealed this divergence as early as February 2025.
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Despite its recent struggles relative to gold, Bitcoin is not without its supporters. Analysts like Peter Brandt have echoed Balchunas' optimistic view, projecting that Bitcoin…
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While 2025 has been a challenging year for Bitcoin in comparison to gold, the long-term outlook for the cryptocurrency remains positive.
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Peter Schiff’s claim that Bitcoin is in a "stealth bear market" relative to gold highlights the challenges facing the cryptocurrency in 2025.
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