In 2025, investors are favoring gold and silver over bitcoin (BTC $87,783.77) as hedges against potential fiat currency devaluation.
Gold has gained nearly 70% since January, while silver has surged roughly 150%, significantly outpacing bitcoin, which has dropped about 6% over the same period. Analysts point to the “debasement trade” — buying perceived stores of value in anticipation of currency depreciation driven by loose monetary policy and growing fiscal deficits — as a key driver of the rally.
Bitcoin bulls had expected strong year-end performance, citing the same theme, but the cryptocurrency’s rally stalled above $126,000 in early October and has since fallen below $90,000.
From a technical standpoint, gold has been resilient. The Kobeissi Letter notes it has remained above its 200-day simple moving average — a major long-term trend indicator — for roughly 550 consecutive trading days, marking the second-longest streak on record.
Despite gold’s lead, analysts expect bitcoin to catch up next year. “Gold has been leading BTC by about 26 weeks,” said Lewis Harland, portfolio manager at Re7 Capital. “Its strength reflects expectations for further currency debasement and fiscal strain, a backdrop that historically supports both assets, with bitcoin showing higher volatility.”
Predictions markets mirror this view: Polymarket traders assign bitcoin a 40% chance of being the top-performing asset in 2026, versus 33% for gold and 25% for equities.
