In 2025, investors are turning to gold and silver over bitcoin to protect against paper money risk.

In 2025, investors have turned decisively to precious metals like gold and silver to hedge against potential declines in fiat currency, leaving bitcoin (BTC $87,783.77) behind.

Gold has risen nearly 70% since January, while silver has surged around 150%, far outpacing bitcoin, which has fallen roughly 6% over the same period. Analysts attribute the rally to the so-called “debasement trade,” a strategy that involves buying assets perceived as stores of value in anticipation of currency depreciation driven by loose monetary policies and fiscal deficits. As fiat value erodes, the price of these assets typically rises.

Earlier this year, bitcoin bulls highlighted the debasement trade as a key catalyst for optimistic year-end forecasts. However, bitcoin’s rally stalled above $126,000 in early October and has since pulled back below $90,000.

From a technical standpoint, gold has been particularly resilient. According to The Kobeissi Letter, the metal has remained above its 200-day simple moving average — a key long-term trend indicator — for roughly 550 consecutive trading days, the second-longest streak on record after the 2008 financial crisis.

Despite gold’s strong performance, crypto analysts remain confident in bitcoin’s eventual catch-up. Historical trends show bitcoin often lags gold but rallies with significant momentum once it aligns.

“Gold has been leading BTC by roughly 26 weeks, and its consolidation last summer mirrors Bitcoin’s pause today,” said Lewis Harland, portfolio manager at Re7 Capital. “The renewed strength in gold reflects market expectations for further currency debasement and fiscal strain in 2026 — conditions that historically support both assets, with bitcoin showing higher volatility.”

Predictions markets reflect this view: Polymarket traders currently assign a 40% probability that bitcoin will be the best-performing asset in 2026, versus 33% for gold and 25% for equities.