Gold vs. Bitcoin in 2025: How Liquidity, Trade, and Trust Are Driving the Advantage

Despite the hype around bitcoin ETFs, central banks and major asset allocators continue to favor gold for reserves and trade.

Gold is outperforming bitcoin not just in price, but in investor confidence. Since the launch of spot bitcoin ETFs in early 2024, bitcoin has struggled to gain traction, while gold has quietly surged. Year-to-date, bitcoin is down roughly 12% since the ETFs debuted, whereas gold has climbed 58%.

Mark Connors, founder and chief macro strategist at Risk Dimensions and former global head of risk advisory at Credit Suisse, explains that the reason is simple: bitcoin is still too young. “The buyers that matter — central banks, sovereign wealth funds, large asset allocators — they still prefer gold,” he told CoinDesk.

It’s not only about volatility or regulatory uncertainty. Gold benefits from centuries of trust, established infrastructure, and financial channels already embedded in central banks and trade. Bitcoin, in contrast, remains largely outside these systems. “Some of these institutions haven’t exactly called Unchained and said, ‘Can I get a wallet?’ They just aren’t there yet,” Connors said.

The contrast is especially clear among BRICS nations, including China, India, and Russia, which are accelerating gold accumulation and even using it for oil settlement — a function bitcoin has yet to fulfill. “There’s a trade component to gold that brings real demand. Bitcoin doesn’t have that yet,” Connors said.

Bitcoin’s recent weakness — down more than 30% from its July peak — contrasts with gold’s steady rise above $4,100 per ounce. Connors also cites U.S. fiscal policy and liquidity constraints, which impact leveraged assets like bitcoin more acutely than gold.

While bitcoin may grow in appeal as trust in fiat currencies erodes, Connors warns it is not yet a substitute for gold in institutional portfolios. “Gold’s been around forever. Bitcoin is still growing up,” he said.