Gold has now outperformed Bitcoin over the past five years, posting gains of more than 185%, compared with Bitcoin’s roughly 164% rise over the same period. The widening performance gap highlights a growing divergence between traditional safe havens and digital assets.
Bitcoin traded lower on Wednesday as gold surged 4.4% in just 24 hours, adding an estimated $1.5 trillion to its total market value in a single session. The sharp rally pushed gold above $5,500 per troy ounce, marking a fresh all-time high.
As a result, gold’s total market capitalization climbed to around $34 trillion. The one-day increase alone came close to matching Bitcoin’s entire market cap of roughly $1.75 trillion, according to data from Infinite Market Cap.
Silver has also joined the rally. The precious metal has jumped more than 21% over the past week, lifting its market capitalization to approximately $6.6 trillion. That surge has further widened silver’s lead over Nvidia, currently the world’s largest publicly traded company by market value.
Precious metals outperform as Bitcoin struggles
The multi-month rally in precious metals is widely viewed as part of a broader “debasement trade,” driven by concerns over fiscal expansion and currency dilution. This trend stands in sharp contrast to Bitcoin’s relatively muted performance, despite long-standing arguments that the cryptocurrency should behave as a digital safe-haven asset.
Bitcoin’s price has struggled to gain momentum since early October, when a sharp crypto market downturn triggered more than $19 billion in liquidations. Prior to that crash, many investors believed Bitcoin and gold would rise together during periods of aggressive monetary policy and fiscal uncertainty.
The divergence between the two assets becomes even clearer over a longer time horizon. On a five-year basis, gold has delivered stronger returns than Bitcoin, reinforcing its appeal among risk-averse investors.
Institutions still see long-term value in Bitcoin
Despite recent underperformance, institutional sentiment toward Bitcoin remains constructive. A recent Coinbase survey found that 71% of institutional investors believe Bitcoin is undervalued when trading between $85,000 and $95,000.
Roughly 80% of respondents said they would either hold their positions or increase exposure if the crypto market were to fall another 10%, signaling continued long-term confidence in digital assets.
Sentiment indicators tell a different story
Investor sentiment metrics show a stark contrast between gold and Bitcoin. The Crypto Fear & Greed Index, which tracks sentiment in the digital asset market, currently sits at 26 out of 100, firmly in “fear” territory.
By comparison, JM Bullion’s Fear & Greed Index for gold stands at 99 out of 100, reflecting “extreme greed” and strong bullish conviction among precious metals investors.
