Gold vs. Bitcoin: Which Asset is Winning in 2025?

Gold has surged 38% year-to-date in 2025, outpacing many traditional assets and even beating Bitcoin’s 23% rise over the same period. Still, when zooming out, Bitcoin has consistently outperformed gold and nearly every other investment since its inception.

To better understand their performance, analysts compare both assets to the growth of U.S. money supply (M2). This measure highlights how effectively an asset preserves value against inflation and monetary expansion. Despite its impressive run this year, gold remains below its 2011 peak when adjusted for M2. In fact, on this basis, gold is roughly at the same level it was in 1975. Its strongest relative performance occurred in 1980, but it hasn’t reached new highs since.

Bitcoin tells a very different story. Every bull cycle has pushed BTC to new record highs against M2, underscoring its resilience in times of rapid money supply growth. Just last month, Bitcoin not only hit a fresh all-time price high but also set a new record when measured against M2, solidifying its position as a unique inflation hedge.

This divergence illustrates the evolving roles of the two assets. Gold continues to act as a trusted store of value and stabilizer in diversified portfolios. Bitcoin, however, has shown its potential as a new form of money, thriving in an environment of expanding liquidity and inflationary pressures.

As investors look for ways to protect wealth, gold offers tradition and stability, while Bitcoin provides growth and adaptability. Their contrasting performance highlights the balance between old and new strategies for navigating today’s financial landscape.