Gold Outperforms Bitcoin Amid Global Tensions and Tariff Talks
As of mid-March 2025, gold prices have surged over 15% year-to-date, reaching a record high of $3,035 per ounce. This rally is attributed to factors such as geopolitical tensions, significant inflows into gold exchange-traded funds (ETFs), and discussions surrounding new U.S. tariffs under President Trump’s administration.
In contrast, Bitcoin has experienced a decline of approximately 10% over the same period. Historically, gold and Bitcoin have exhibited counter-cyclical behavior, with gold performing strongly during economic contractions and Bitcoin thriving during expansions. This pattern suggests that Bitcoin’s current downturn may be temporary, with potential for future growth as economic conditions evolve.
Notably, the Bitcoin-to-gold ratio has broken a 12-year support level, highlighting gold’s recent dominance over Bitcoin.However, some analysts, including ByteTree founder Charlie Morris, advise investors to maintain holdings in both assets.Morris emphasizes that while gold currently leads, Bitcoin’s cyclical nature could result in substantial gains once the economic climate shifts favorably.
In summary, gold’s recent surge underscores its role as a refuge during times of economic uncertainty, while Bitcoin’s performance reflects its sensitivity to broader market conditions. Investors are encouraged to consider the historical interplay between these assets when making portfolio decisions, recognizing that each has distinct characteristics that may complement different investment strategies.
Editorial Team
Reporter at Coindoo
