It's been years since the crypto community has been referring to Gold as digital gold. If it were true, Bitcoin should have acted as a hedge against volatility similar to Gold.
But a quick look at Bitcoin shows that's not what's happening right now. The prices of Gold have already crossed $3K and made a new all times high. Overall, Gold is up by 15% YTD while Bitcoin is down by 20% from its ATH this year.
It's also worth mentioning that Bitcoin is closely correlated to the stock market. If we look back, this correlation was not always present. After that, the key thing which made Bitcoin an interesting option for investors.
However, 2025 has changed this as Bitcoin is now behaving just like a tech stock listed on the US stock markets. Also, there's a lot of evidence which supports this correction.
One key reason for this is the obsession of Bitcoin investors with the US macro data. From GDP to inflation to interest rates, everything impacts the next direction of Bitcoin.
According to forecasts from Goldman Sachs, Gold will likely touch $3300 by the end of 2025. This means we can expect another 10% jump in Gold prices this year.
On the other hand, a 10% change is something that can happen in Bitcoin during a single day. So, it shouldn't be too tough for Bitcoin to end this year with 10% or even more gains.
So, if you really have to pick Gold or Bitcoin, I would go with Bitcoin for now. The potential to get a sizeable return is way higher in Bitcoin as compared to Gold.
There's no doubt that Bitcoin will easily outperform Gold in the year 2025. While the Gold is only expected to rise 10%, Bitcoin can easily gain 50% or even more this year.