BTC falls against gold as investors eye the ‘safe haven’ appeal.

Gold Rallies as Bitcoin Struggles to Live Up to ‘Digital Gold’ Label

Gold is surging on expectations of rate cuts and geopolitical tensions, while Bitcoin has struggled to maintain key levels, remaining vulnerable to the same forces affecting equities and other risk assets.

The divergence is reigniting a debate among investors: if Bitcoin is meant to be digital gold, these are the conditions it should outperform under—yet it currently does not.

Gold has risen more than 70% this year, while silver has gained roughly 150%, marking their strongest annual performances since 1979. Platinum also reached record levels, as investors increasingly seek precious metals to hedge against geopolitical instability and long-term currency risk.

Bitcoin’s weakness stems partly from market positioning. The cryptocurrency is still digesting extended leverage-driven trading, and recent rebounds have faced quick profit-taking. Macro factors further weigh on Bitcoin: even with anticipated rate cuts, it typically requires clear risk-on conditions, whereas gold benefits first from bond yield swings, dollar volatility, and “capital preservation” sentiment.

David Miller, CIO at Catalyst Funds and portfolio manager of the Strategy Shares Gold Enhanced Yield ETF, highlighted the contrast. “Gold has had a record year, up over 60%, but Bitcoin isn’t acting like digital gold,” he said. Miller noted that while Bitcoin may still serve as a long-term hedge against fiscal expansion and currency debasement, gold remains an institutional reserve asset.

World Gold Council data shows steady accumulation in gold-backed ETFs, with State Street’s SPDR Gold Trust up more than 20% in 2025. Wall Street analysts are also bullish: Goldman Sachs projects gold could reach $4,900 an ounce in 2026, with upside risks skewed higher.