Bitcoin Struggles to Match Gold’s Performance in 2025 as Geopolitical Tensions Drive Investors Towards Traditional Safe-Haven Assets

In 2025, Bitcoin has found it challenging to keep pace with gold, as geopolitical instability and the repercussions of Trump's trade policies push investors towards more traditional safe-haven assets.

Bitcoin has struggled to match gold’s performance in 2025 as geopolitical tensions and the repercussions of Trump’s trade policies push investors towards more traditional safe-haven assets, with gold surging significantly.

In 2025, Bitcoin has found it challenging to keep pace with gold, as geopolitical instability and the repercussions of Trump’s trade policies push investors towards more traditional safe-haven assets.

Gold has significantly outperformed Bitcoin this year. While Bitcoin excelled against most asset classes last year, it is currently lagging behind gold as investors seek stability amidst increasing geopolitical tensions. A recent Bloomberg report highlights that the ongoing U.S.-China trade war, along with tariff threats and Trump’s foreign policy remarks, have catalysed a rally in gold prices, propelling them to a record $2,882 per ounce. Year-to-date, gold has surged by 9%, whereas Bitcoin has managed only a modest gain of 3%, remaining 10% below its peak.

Despite Bitcoin’s inherent scarcity, it has struggled to function as a reliable store-of-value asset. Unlike gold, which tends to thrive during periods of economic uncertainty, Bitcoin’s price movements have remained closely tied to the performance of tech stocks. Aoifinn Devitt, a senior investment advisor at Moneta Group LLC, noted that Bitcoin continues to be viewed as a risk-on asset rather than a genuine hedge against fiat currencies. “In time, it will develop characteristics distinct from market movements, but at present, it behaves as the riskiest of risk-on assets,” she explained.

Nevertheless, Bitcoin advocates maintain a sense of optimism. Paul Howard, Senior Director at Wincent, argues that the introduction of spot Bitcoin ETFs could help stabilise price fluctuations. He believes this development may enable Bitcoin to gradually evolve into a true store of value, akin to gold, over the long term.