Gold Holds Its Ground, but Bitcoin’s Long-Term Momentum Grows: Analysts

In Brief:

Gold is up 27% YTD, outperforming Bitcoin’s 12% amid trade tensions and economic uncertainty.

Analysts say Bitcoin’s ETF inflows and institutional demand point to a stronger long-term trajectory.

Bitcoin’s price fell over the past week as investors rotated back into gold, reaffirming the metal’s traditional safe haven role during economic uncertainty. The reversal comes as fears of inflation and a slowing global economy intensify under new tariff threats from the Trump administration.

Gold has gained 27% year-to-date, compared to Bitcoin’s 12%, with analysts noting its performance during Q1 as particularly strong. “Even hardcore Bitcoiners have to respect what gold did during the tariffs,” said Bloomberg ETF analyst Eric Balchunas.

However, some experts believe Bitcoin’s recent dip doesn’t signal a long-term reversal. The asset briefly reached an all-time high near $112,000 earlier this month before pulling back more than 6%. Meanwhile, gold remains near its recent record above $3,440 per ounce.

“Gold is still a reliable hedge, especially with Moody’s downgrade of the U.S.’s last top credit rating,” said OCBC’s Christopher Wong. He emphasized gold’s continued role as a structural counterweight to a weakening dollar.

Despite this, Bitcoin is attracting growing institutional inflows. According to CoinShares’ James Butterfill, Bitcoin funds have seen $7.3 billion in inflows since late April, while gold ETFs lost $4.9 billion. SEC-approved spot Bitcoin ETFs now manage over $127 billion, led by BlackRock’s IBIT at nearly $70 billion.

“Gold may have won this round,” said Butterfill, “but Bitcoin is still winning the longer game.”

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