Gold and silver investors are ending 2025 with a victory lap, while bitcoin and other cryptocurrencies struggle to keep pace, reigniting the debate over whether bitcoin can truly serve as “digital gold.”
Precious metals capped off a historic year on Friday, with gold futures trading above $4,550 per ounce and silver surging past $75 per ounce, both hovering near all time highs. The rally marks one of the strongest annual performances for metals in decades, driven by geopolitical risk, central bank buying, and robust industrial demand.
By contrast, Bitcoin is down roughly 6% in 2025, while Ether is on track for a 12% annual loss, leaving crypto investors watching from the sidelines as metals dominate the spotlight.
A widening gap between metals and crypto
Gold is up nearly 70% this year, while silver has jumped around 150%, its strongest run since the late 1970s. Platinum and copper have also reached record levels, reinforcing a broad shift toward real assets.
Some market veterans argue the divergence says more about bitcoin than gold.
Louis Navellier, founder of Navellier & Associates, said the performance gap is a wake up call for crypto investors.
“With gold now up almost 70% in 2025 and most cryptocurrencies negative, the time has come for the crypto crowd to switch to gold,” he said, citing central bank demand, lower volatility, and deeper liquidity in the gold market.
Longtime crypto critic Peter Schiff echoed that view, questioning bitcoin’s ability to rally in any macro environment.
Bitcoin struggles despite supportive backdrop
Bitcoin’s underperformance is notable given a year that featured improving regulation and growing Wall Street adoption. Instead, the token has diverged from stocks for the first time in more than a decade.
After peaking near $126,000 in October, bitcoin slid nearly 30%, weighed down by long term holder selling, forced liquidations, and fading risk appetite. As of Friday, prices hovered just above $87,000, with bitcoin attempting to avoid a third consecutive monthly decline.
Fundstrat’s head of digital assets Sean Farrell said the weakness reflects year end positioning rather than a broken long term thesis.
“Santa rallies usually involve selling losers and buying winners,” Farrell said. “Bitcoin has underperformed for months, so investors are hesitant to add risk here.”
Farrell still expects a January rebound, noting that historically, red Decembers have often been followed by stronger starts to the new year.
Why gold is winning the ‘safe haven’ trade
Gold’s appeal has been reinforced by persistent inflation, geopolitical instability, falling rate expectations, and heavy central bank accumulation. Holdings in gold backed ETFs have risen steadily throughout 2025, signaling long term institutional demand rather than short term speculation.
David Miller, chief investment officer at Catalyst Funds, said the contrast highlights a fundamental difference.
“Gold can have a record year while bitcoin is down in the same year,” Miller said. “Gold is an institutional reserve asset. Bitcoin is still largely a retail driven trade.”
Several Wall Street banks have extended their bullish outlook into 2026. Goldman Sachs has forecast gold could approach $4,900 per ounce next year, with risks skewed to the upside if geopolitical or fiscal pressures intensify.
2025 has become a defining year for the gold versus bitcoin debate. As precious metals reclaim their role as the market’s preferred hedge, bitcoin’s struggle has forced investors to reassess whether it truly behaves like digital gold or remains a high beta risk asset.
With metals at record highs and crypto searching for footing, the divide between the two has rarely been clearer heading into 2026.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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