Amid a ‘fear and AI’ rally, gold and copper outperform Bitcoin.

Gold and Copper Outperform Bitcoin as Investors Favor Tangible Assets

Gold and copper have been 2025’s top-performing assets, while Bitcoin has lagged behind, failing to capture the year’s dual trends of safe-haven demand and AI-driven growth.

Gold has surged roughly 70% to a record high above $4,450 per ounce, outpacing every major asset. Copper, a key industrial metal and barometer of global economic health, has gained 35%, according to TradingView. By comparison, the S&P 500 and Nasdaq have risen 17% and 21%, the 10-year Treasury note has fallen 9%, Bitcoin is down 6%, and the dollar index has dropped nearly 10%.

The divergence reflects a shift toward tangible assets. Gold, the ultimate hedge against risk and inflation, has benefited from rising fiscal concerns, geopolitical tensions, and fears of fiat debasement. Copper has been lifted by AI-driven demand, electrification trends, digital infrastructure, and constrained supply amid geopolitical uncertainty.

Bitcoin, meanwhile, has struggled to appeal as “digital gold.” Markus Thielen, founder of 10x Research, noted that institutional investors are less convinced by narratives emphasizing passive allocation or long-term value preservation, limiting fresh capital inflows.

Greg Magadini of Amberdata highlighted another key factor: “Gold is the hard asset favored by sovereigns, whereas Bitcoin remains speculative, appealing mainly to retail and high-risk investors.”

Despite its underperformance, some see Bitcoin’s consolidation as building energy for a future rally. Lewis Harland, portfolio manager at Re7 Capital, explained that Bitcoin historically reacts with greater momentum after periods of pause, especially as currency debasement and fiscal strain accelerate.

The copper-to-gold ratio, a measure of economic health, has fallen nearly 20% to its lowest level in over two decades, signaling a “late-cycle” or fragile expansion environment. Investors are betting on both AI-driven growth (copper) and protection against systemic risks (gold), highlighting a flight to tangible assets in a world increasingly skeptical of fiat promises.