Yeliz Akmaca 
In 2025, a clear trend is emerging in investor and central bank preferences: gold is outperforming Bitcoin. Despite the launch of spot Bitcoin ETFs, gold has gained 58% this year, while Bitcoin has lost approximately 12%.
Mark Connors emphasizes that Bitcoin is still “too young” in terms of institutional trust. Gold, on the other hand, benefits from centuries of established infrastructure and commercial use, making it a safe haven for investors. According to Connors, Bitcoin’s recent decline is linked not to market sentiment, but to global liquidity constraints. In particular, delays in U.S. Treasury spending have reduced liquidity, making riskier assets more sensitive. Are you wondering whether gold or Bitcoin outperformed this year? Keep reading to find out.
Institutional Investors Favor Gold
Following the launch of spot Bitcoin ETFs, many analysts expected a rapid and sustainable rise in Bitcoin. However, after nearly two years, the picture has changed: gold quietly outperformed Bitcoin. Connors explains the main reason as infrastructure and historical trust. Gold, already held in central bank accounts and widely used in trade, remains familiar and reliable for investors.
“Major buyers are still opting for gold. Bitcoin is not yet fully accessible to these institutions,” Connors notes. BRICS nations are also accelerating their gold accumulation, and in some cases, even conducting oil trades using gold. Bitcoin’s limited adoption in international payments means gold continues to dominate as a reserve and trade asset.
Bitcoin’s Decline Linked to Liquidity
Since its July peak, Bitcoin has lost more than 30%, while gold steadily rose, surpassing $4,100 per ounce. Connors attributes Bitcoin’s decline not to sentiment but to liquidity constraints caused by U.S. fiscal policies.
“When the U.S. Treasury slows spending, there is less money in the system. Bitcoin, especially with leverage in Asia, is highly sensitive to these liquidity shifts,” Connors explains. Temporary balance sheet changes and spending delays have hit riskier assets like Bitcoin harder than traditional markets.
The Future of Bitcoin: Can It Replace Gold?
Connors believes gold’s superiority over Bitcoin could persist in the long term, though he notes that this underperformance may not be permanent. If U.S. Treasury spending resumes at scale, liquidity could return to markets, benefiting Bitcoin. He also expects Bitcoin’s appeal to increase as trust in fiat currencies weakens, especially in emerging markets.
Still, institutional investors do not flip a coin between gold and Bitcoin. “Gold fits their objectives; Bitcoin hasn’t yet,” Connors says. This divergence indicates that the journey toward Bitcoin becoming a global reserve asset is slower than many anticipated. The issue isn’t technology—it’s the time needed to build trust and habits.
Ultimately, in 2025, gold demonstrates strong performance against Bitcoin due to liquidity, trade, and institutional trust factors. While Bitcoin continues to grow, gold remains a crucial safe-haven asset for investors.
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