Gold Outpaces Bitcoin as Safe Haven Asset in 2025 Amid Record Inflows

Bitcoin struggles as a safe haven in 2025, with gold fund inflows reaching $80 billion and prices nearing $3,300 per ounce. Gold is outperforming all asset classes amidst economic uncertainty, while Bitcoin ETFs see declining assets. Analysts warn of a potential gold price correction, which may allow Bitcoin to rise in response. Historical patterns suggest Bitcoin typically follows gold’s advances after a delay, indicating a correlation in price movements.

Bitcoin faces challenges maintaining its position as a safe-haven asset, especially in 2025, as gold fund inflows approach a staggering $80 billion. Recent data from Bank of America (BoA), shared by The Kobeissi Letter, highlights that gold is experiencing its most impressive performance since 2013, with prices nearing $3,300 per ounce as of April 16, 2025. This influx into gold has doubled the previous investment high set in 2020, attributing to increased market uncertainty.

In contrast, Bitcoin’s situation appears bleak, as recent figures indicate that the combined assets in Bitcoin exchange-traded funds (ETFs) have decreased from $106 billion to $92 billion since the beginning of the year. As the US trade conflicts drive investors toward gold, Bitcoin’s appeal as a hedge against economic volatility diminishes. While gold has shown a remarkable growth of 22% this year, outperforming other asset classes, Bitcoin’s price has recently reached five-month lows.

Although gold is achieving new all-time highs and has seen 52 peaks over the last year, market analysts, including trader Peter Brandt, suggest caution. Brandt describes the current state of gold as entering a “blow-off top” phase, indicating that while gold’s rapid price advancement is promising, it may ultimately lead to a significant downturn. This phenomenon provides potential for Bitcoin to rise subsequently in alignment with historical trends.

Anthony Pompliano, founder of Professional Capital Management, proposes that fluctuations in gold often precede Bitcoin movements. He notes that Bitcoin usually follows gold’s lead with a roughly 100-day lag, often with greater volatility. This correlation remains somewhat enigmatic, with suggestions that traditional financial institutions are still adapting to the concept of Bitcoin as reliable protection against macroeconomic concerns. Investors are advised to conduct thorough research before engaging in any trading activities.