- Gold surged nearly 20% in Q1 2025, hitting a record high as investors sought safe-haven assets amid global uncertainty. Y
- Meanwhile, Bitcoin dropped 12%, struggling despite strong ETF inflows and growing institutional interest.
In the first quarter of 2025, the financial world witnessed a dramatic divergence between two of the most closely watched assets: Gold and Bitcoin. While Gold soared to new heights, Bitcoin struggled under pressure, marking a stark contrast in investor sentiment.
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Gold (XAU/USD) surged nearly 20%, peaking at an all-time high of $3,167. The precious metal’s rally was driven by a mix of macroeconomic factors: rising geopolitical tensions, U.S. tariff concerns, expectations of Federal Reserve rate cuts, and robust central bank demand. According to State Street Global Advisors, global Gold ETFs saw net inflows of 155 tonnes—reversing a multi-year trend of outflows and marking the strongest quarterly inflow since the onset of the Russia-Ukraine conflict in 2022.
This resurgence in demand, particularly from Western financial institutions, has sparked a renewed interest in Gold as a safe-haven asset. Analysts point to a potential tightening in Gold’s supply-demand dynamics as ETF investors shift from years of selling to fresh accumulation.
Meanwhile, Bitcoin (BTC) had a rough start to the year. Despite reaching a record high of $109,588 in January, the cryptocurrency plunged nearly 12% by quarter’s end, bottoming out at $76,606. It now hovers around $83,000. This marked BTC’s worst first-quarter performance since 2018, dragged down by fading post-election momentum and a broader shift away from risk assets.
Interestingly, the Bitcoin spot ETF still saw nearly $1 billion in net inflows, suggesting that institutional interest remains intact. Yet, experts like those at K33 Research argue that while Bitcoin shares qualities with Gold—scarcity, liquidity, and global pricing—its status as a safe haven is still in development.
Bloomberg Intelligence’s Mike McGlone echoed this view, noting the Bitcoin-to-Gold ratio likely peaked in 2024, hinting that BTC’s days of outperforming Gold may be on pause.
As Q2 unfolds, investors are watching closely: Will Bitcoin regain its footing, or will Gold continue to shine as the ultimate hedge in an uncertain world?