Gold or Bitcoin? Who Will Win the Battle?
Gold is back. For years the precious metal was ignored by many investors, but in an era of money devaluation and monetary uncertainty it seems to have fully regained its shine.
Gold is back. For years the precious metal was ignored by many investors, but in an era of money devaluation and monetary uncertainty it seems to have fully regained its shine. Central banks and private investors are flocking to gold, a move that also affects Bitcoin's position.
Gold regains its dominant role
According to economist-analysts, the share of gold in official reserves worldwide is rising, while the share of the U.S. dollar is falling. In a chart he shared, the two lines nearly mirror each other, as if gold is taking the place of the dollar.
Analyst Jack Prandelli notes that historically this is not new: “As it has always been in the past.” Indeed, earlier data show gold played a much bigger role in global reserves in earlier decades than it does today.
The recent shift is driven not only by central banks' active choices but also by the strong rise in gold prices itself. In 2025, gold rose by a whopping 55% vs the U.S. dollar. So it's not surprising that the precious metal is gaining ground on the world currency.
Bitcoin in the shadow of gold
Gold's renewed success is a double-edged sword for Bitcoin. On one hand, investor attention shifts temporarily to the tangible metal. The idea of Bitcoin as 'digital gold' seems to fade for a moment, while capital flows into gold.
But in the longer term, this development could actually be positive for Bitcoin. Once investors take profits on gold, some of that capital may find its way back to the crypto market. In finance, it's all about momentum, and that can swing quickly.
The power of 'digital gold'
In the big picture, gold's rise even makes a case for Bitcoin. Gold's total market cap has risen to $28.9 trillion, while Bitcoin sits at about $2.23 trillion. That means gold remains almost 13 times larger than Bitcoin.
For many investors who view Bitcoin as digital gold, that comparison hints at potential room to grow. If Bitcoin ever matches gold's value, that would imply a price around $1.5 million per Bitcoin.
