Gold vs Bitcoin Investment: Which Asset Will Perform Better in 2025?

Bitcoin, often called “digital gold,” just took a hit. Yesterday, its price dropped by 6.37%—the steepest fall since March 3, when it plunged by 8.53%. Now trading at $82,362.27, Bitcoin is struggling to recover from the sudden dip. But here’s where it gets interesting – Bloomberg Economics’ latest analysis of the gold-to-Bitcoin (BTC) ratio suggests a major shift could be on the horizon. Could Bitcoin be gearing up for a comeback?

Gold-to-Bitcoin Ratio: A Key Market Indicator

The gold-to-BTC ratio, which compares gold’s price to Bitcoin, now stands at 0.034, with gold priced at $2,909.42. This ratio has been fluctuating throughout the year, offering insights into market trends. Bloomberg’s analysis indicates that a major shift in this ratio could be coming.

In early March 2024, the ratio was close to its current level. By September 2024, it peaked at 0.047 before falling to 0.029 in late November, coinciding with U.S. political changes favoring crypto. At the start of 2025, the ratio was 0.028 and dipped further to 0.026 in late January.

However, February saw steady growth, reaching 0.035 by the end of the month. Now, it stands at 0.034.

Could Bitcoin Outperform Gold?

Interestingly, when the gold-to-BTC ratio spiked in February, Bitcoin saw a sharp 17.5% decline. According to Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, Bitcoin could soon gain more value compared to gold.

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In a recent post on X, McGlone pointed out that if the U.S. stock market continues to decline, it could impact both Bitcoin and gold.

Over the past month, the S&P 500 has dropped 4.87%, with a 3.50% decline in just the last week. Despite this, the S&P 500’s year-to-date (YTD) performance remains slightly positive at 1.68%.

What’s Next for Bitcoin?

Bloomberg’s analysis suggests that if the stock market continues to struggle, Bitcoin may gain more value relative to gold. The recent shifts in the gold-to-BTC ratio highlight Bitcoin’s growing strength. If this trend follows past patterns, Bitcoin’s price could rise while gold’s relative value declines.

For investors, the gold-to-BTC ratio remains an important signal. If the market behaves as expected, Bitcoin could soon solidify its position as a stronger store of value than gold.

Keep an eye on this ratio – it could hint at Bitcoin’s next big move!

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