Is Bitcoin about to surpass gold as the top investment choice?

Gold and Bitcoin have been the talk of the investment world in 2025. Gold, in particular, has been performing exceptionally well, with record-breaking prices and investors flocking to secure this traditional safe-haven asset during uncertain times. On the other hand, Bitcoin is silently climbing towards all-time highs and potentially offers more significant future potential than gold. Bitcoin recently surpassed $100,000 for the first time since February, rebounding from a low of $75,000 due to market concerns surrounding tariffs and the US-China trade war.

Unlike gold, which thrives in times of uncertainty, Bitcoin is more responsive to changes in monetary policy and market conditions influenced by liquidity and confidence in fiat currency. Bridget Nichols, the COO of Monochrome Asset Management, elucidates that Bitcoin performs well when liquidity expands, and confidence in fiat currency weakens, making it highly sensitive to macroeconomic circumstances. With global central banks expected to cut rates aggressively, Bitcoin emerges as an appealing alternative for investors seeking growth and diversification without venturing into equities.

Moreover, the performance of Bitcoin has shown a strong correlation with the total M2 money supply. Bitcoin’s price movements have closely aligned with fluctuations in the M2 money supply, reflecting its responsiveness to monetary policy changes. Bitcoin experienced a surge during the fiscal stimulus period of the Covid-19 pandemic, and with Europe, China, and the US likely to increase monetary supply, Bitcoin stands to gain further momentum.

Gold, with its historical significance as a medium of exchange, currency, and safe-haven asset, faces a new challenger in Bitcoin. Cryptocurrencies represent a novel asset class that resonates with the increasingly digitized modern world. Unlike gold, which has historical relevance but may be considered somewhat outdated, Bitcoin offers asymmetric upside potential due to its adoption curve and potential for institutional integration. As Nichols aptly puts it, Bitcoin’s dynamic nature aligns with the digital economy, making it a credible alternative in the face of persistent inflation, low real interest rates, and currency devaluation.

The appeal of Bitcoin to retail investors lies in its multifaceted nature, offering various narratives and investment opportunities. A survey by the deVere Group revealed that 77% of investors under the age of 40 prefer adding Bitcoin to their portfolio over gold. Institutional adoption of Bitcoin has gained traction, with more Americans now owning Bitcoin than gold. The recent surge of cryptocurrency ETFs has made Bitcoin more accessible to a broader range of investors, evident by the billions of dollars poured into US-listed Bitcoin ETFs in April alone.

While gold ETFs continue to dominate the market, Australian-listed Bitcoin ETFs have accumulated significant inflows this year, showcasing the growing interest in Bitcoin as a viable investment option. The institutional adoption of Bitcoin, often seen as a distant dream for early adopters, has become a reality as institutions are beginning to recognize the value and potential of this digital asset.