Gold predicted to follow a long-term downward trend compared to Bitcoin, according to Brandt.
In the world of finance, the performance of traditional safe-haven assets and digital currencies continues to captivate investors. This year, the Bloomberg Galaxy Crypto Index barely matched the gains of the S&P 500, indicating a relatively poor performance for the nascent crypto asset class. However, gold, a traditional safe-haven asset, has been a different story.
Gold reached a new all-time high of $3,500 on Apr. 22, a significant milestone. This new high came after massive tariffs announced by the U.S., and gold is currently experiencing another rally, up from its previous peak. The surge to a two-week peak of $3,407 today is a testament to the growing interest in gold, which is attracting more buyers due to rising odds of rate cuts by the U.S. Federal Reserve this year.
Despite gold's impressive performance in 2022, it was Bitcoin that took the lead in the long-term performance from 2022 through 2025. In 2022, gold was relatively stable or gaining moderately, while Bitcoin was still recovering and more volatile. Bitcoin's price around mid-2022 was roughly $23,300, indicating it had already declined significantly from its previous highs before starting its strong rally afterward.
From mid-2022 to mid-2025, Bitcoin entered a strong uptrend, reaching all-time highs above $122,000 in 2025, with year-to-date gains of about 29%. This is in contrast to gold's roughly 27% gains in the same year. Over the longer term (3 years from mid-2022 to mid-2025), Bitcoin's gains are extraordinary (+350% to +430%), vastly exceeding gold's typical annual returns around 26-28%.
Bitcoin's volatility and sensitivity to global risk appetite and equity market fluctuations make it a stark contrast to gold, which acts as a stable inflation hedge and a diversifying asset in portfolios. Their performance correlation varies over time, often low or inverse due to Bitcoin’s speculative nature versus gold’s traditional safe-haven status.
While gold had better performance in the calendar year 2022 itself due to Bitcoin’s volatility and correction phase, Bitcoin’s long-term trajectory from 2022 through 2025 shows significantly higher returns, outperforming gold substantially by 2025.
As of now, Bitcoin has only managed a 24% increase this year, while gold has seen a 29% rise. Bitcoin briefly surpassed gold in terms of year-to-date returns in July, but has since fallen behind.
It's important to note that opinions on the future performance of both assets differ among analysts. For instance, Mike McGlone recently turned bearish on Bitcoin, while Fidelity's Jurrien Timmer previously predicted that Bitcoin would outperform gold in the second half of the year.
Gold's rally is also being influenced by growing trade tensions, although no specific new facts about gold's tariff-related rallies or trade tensions were mentioned in this paragraph.
In conclusion, while gold has been a standout performer in 2022, Bitcoin's long-term trajectory from 2022 through 2025 shows significantly higher returns, outperforming gold substantially by 2025.
- The rise in Bitcoin's price from mid-2022 to mid-2025 outperformed gold, reaching all-time highs above $122,000 with year-to-date gains of about 29%, a stark contrast to gold's roughly 27% gains in the same year.
- Unlike Bitcoin, gold acts as a stable inflation hedge and a diversifying asset in portfolios, while Bitcoin's volatility and sensitivity to global risk appetite and equity market fluctuations make it a contrasting investment option.
- Crypto news outlets and finance magazines have been buzzing with discussions about Bitcoin's long-term price prediction, with some analysts such as Mike McGlone turning bearish, while others like Fidelity's Jurrien Timmer predicting that Bitcoin will outperform gold in the second half of the year.
- While the performance of traditional safe-haven assets like gold and digital currencies continue to captivate investors, the technology behind cryptocurrencies like Bitcoin, if harnessed effectively, could potentially bring about paradigm shifts in various sectors such as sports and other industries, as suggested by recent crypto news.
