Key Points
- Bitcoin’s value decreased by 32% relative to gold in 2025.
- Bloomberg’s Eric Balchunas predicts Bitcoin ETFs will triple the size of Gold ETFs in the future.
Bitcoin’s Value Decreases Relative to Gold
Bitcoin critic Peter Schiff recently stated that Bitcoin has been in a “stealth bear market” compared to gold.
Schiff pointed out that one Bitcoin now buys fewer ounces of gold than it did at its peak in 2021.
Analysts Dispute Schiff’s Claims
Some analysts argue that Schiff’s timeframe is biased. They note that Bitcoin has outperformed gold by over 12,000% in the past decade, and by 200% in the last two years.
However, in 2025, Bitcoin lost 32% of its value relative to gold, leading some to argue that gold has been a better store of value in the first quarter of 2025.
Institutional investors’ interest in gold compared to Bitcoin is also evident, with Gold ETF’s market cap surpassing that of U.S Spot Bitcoin ETFs.
Bloomberg analyst Eric Balchunas attributes this to gold’s 12% spike in 2025.
Despite this, Balchunas believes that Bitcoin ETFs will eventually triple the size of Gold ETFs, indicating more potential for Bitcoin compared to gold.
The Bitcoin Pearson correlation indicator revealed that the cryptocurrency decoupled from gold in early February.
In 2025, Bitcoin’s value has been influenced by Trump’s tariff wars and U.S equities.
Analyst Peter Brandt sides with Balchunas, predicting last year that Bitcoin would outperform gold by over 120% due to bullish patterns on the Bitcoin/gold chart.
