Bitcoin Vs Gold: Why Is BTC Falling Behind?

Popular analysts highlighted the Bitcoin price struggle amid the Gold ATH rally. Find out who's winning the Bitcoin Vs Gold debate.
By Pooja Khardia
Published: 10 Feb, 2025 | 02:17:08 PM GMT
Bitcoin Vs Gold: Why Is BTC Falling Behind?

Highlights

  • Bitcoin struggles to outperform Gold amid rising economic uncertainties.
  • Popular analyst Peter Brandt highlights the declining BTC-to-Gold ratio, calling it interesting.
  • Gold hits new ATH at $2,896.55 amid Trump's tariff plan introduction, increasing its dominance.

Since the introduction of Bitcoin, its comparison with Gold has been consistent. In the last few years, this cryptocurrency’s adoption has touched the roof, where it recently hit the ATH at $109.1k amid Donald Trump’s support, ETF popularity, and upcoming reserve discussion. However, despite that, analysts find it’s trailing behind Gold, especially when the economic uncertainty rises. Let’s discuss the Bitcoin Vs Gold outlook and where BTC stands in this race.

Bitcoin Vs Gold: Analysts Calls BTC’s Struggle Interesting

After a massive success in the financial market, Bitcoin is often regarded as the ‘digital gold,’ but an analyst highlighted its trailing behavior. According to Peter Brandt’s analysis, BTC has struggled to maintain its value against gold. Through a Bitcoin-to-gold ratio, Brandt highlighted a potential double-top formation at historical highs of 40 ounces per token after a multi-year rally. The Bitcoin Vs gold battle favored the former at that time, but things took a different turn.

The chart clarified that after gold peaked at 38.5 ounces on January 30, the price of Bitcoin sharply declined amid economic uncertainty. This dropped the ratio to 33 ounces by February 3. Since then, Bitcoin has only recovered minorly, trading at 33.85 ounces per BTC, per Brandt’s analysis.

For all of the hype and supposed adoption rate Bitcoin has received in recent years, VERY INTERESTING the $BTC has struggled to pull away from Gold $GLD $GC_F”

Bitcoin Vs Gold

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Why is Bitcoin Falling Behind?

Bitcoin’s struggling phase coincided with Gold hitting a new ATH at $2,896.55, highlighting investors’ preference for the metal over digital assets. Although Bitcoin holders and its supporters claim it is the superior alternative, Gold continues to dominate, especially as Donald Trump has announced a 25% tariff on Steel and Aluminium imports.

Additionally, Gold’s decades-long financial and emotional demand has given it the name of a safe-haven investment. It has been recorded as retaining its value even in economic and geopolitical crises. More importantly, it appreciates when the fiat currencies depreciate. Moreover, due to its limited supply worldwide and global adoption, the central bank has presented the tag of ‘store of value,’’ which Bitcoin lacks.

Some analysts claim that TRUMP’s tariff-like policies could reignite inflation, pushing the Bitcoin Vs gold debate to end with the later one’s win.

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Will BTC Ever Win the Bitcoin Vs Gold Debate?

Although gold is highly favored, Bitcoin is also a leader in the financial markets. Crypto analysts and industry leaders, like Biwtise CIO Matt Hougan, claim Bitcoin could take more shares of gold and hit $500k. Moreover, the success of the Bitcoin ETF and countries like the US considering Bitcoin Reserve could make it the winner of this year’s long battles.

This is a discussion for the future, but first, BTC needs to overcome this volatility. It currently trades at $97.8k, especially as it fears a drop to $93.3K ahead of Powell’s testimony on Tuesday. However, a bounce from $97k could lead to the Bitcoin price hitting $100k again.

More importantly, it needs to become a reliable store of value with the increased demand and acceptance before embracing the ‘digital gold’ remark. Until then, Gold is likely to lead the market.

Bitcoin price prediction

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Final Thoughts

Bitcoin is the most prominent digital asset in the world, with more than a trillion in market cap. However, at the same time, Gold’s market cap is $19.673 T. Additionally, Gold demand and adoption are much higher, concluding as the best assets in Bitcoin Vs gold or any other similar debates. Peter Brandt has also commented on the outlook, highlighting the BTC trailing behind despite the demand and recent adoptions. Only if this digital asset takes more share of Gold and hits the $500k or higher goal can it compete with the famous heavy metal.

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Frequently Asked Questions (FAQs)

1. Why is Bitcoin compared to Gold?

Bitcoin's rising popularity and decentralized nature have led to the Bitcoin vs. Gold Debate. Investors compare their properties to identify better store-of-value titles.

2. What is the current Bictoin-to-Gold ratio?

Peter Brandt's analysis shows that the Bitcoin-to-Gold ratio is 33 ounces per Bitcoin.

3. Can Bitcoin ever surpass Gold in market dominance?

Few analysts, such as Bitwise CIO, believe Bitcoin could eventually surpass Gold's dominance by capturing more of its share and hitting $500k.
Pooja Khardia
Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section. Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights. Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry. When not behind the keyboard, Pooja embraces her creative side through drawing and crafting. Connect with Pooja on LinkedIn or X.
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