Key Points
- Bitcoin declined by 32% relative to gold in 2025, with record inflows into Gold ETFs.
- Bloomberg’s Eric Balchunas predicts Bitcoin ETFs will triple the size of Gold ETFs soon.
Bitcoin’s value has been noted to decline in comparison to gold, according to critic Peter Schiff. Schiff mentioned that one Bitcoin now buys fewer ounces of gold, a 24% decrease from its peak value in 2021.
Bitcoin’s Performance Against Gold
Some analysts have countered Schiff’s claim, pointing out that his timeframe may be biased. Over a 10-year window, Bitcoin has outperformed gold by over 12,000%. In the past two years alone, Bitcoin has seen a 200% increase against gold.
In 2025 however, Bitcoin lost 32% of its value relative to gold. Gold has proven to be a better store of value in the first quarter of 2025, especially after Bitcoin erased gains from the ‘Trump pump’ and gold hit a new high of $3k.
Institutional Interest in Gold and Bitcoin
Institutional investors have shown significant interest in gold compared to Bitcoin. The market cap of Gold ETFs has surpassed the collective size of U.S Spot Bitcoin ETFs. Bloomberg analyst Eric Balchunas linked this ‘flipping’ to gold’s 12% spike in 2025.
Despite this, Balchunas believes that Bitcoin ETFs will eventually triple the size of gold ETFs, indicating a potential upside for Bitcoin.
The Bitcoin Pearson correlation indicator showed that the cryptocurrency decoupled from gold in early February. Analyst Peter Brandt sides with Balchunas, predicting that Bitcoin will outperform gold by over 120%.
