Gold and Copper Surge as Bitcoin Lags Amid Tangible Asset Demand
Gold and copper are leading the 2025 rally, while Bitcoin has struggled to keep pace amid macro uncertainty and an AI-driven growth boom.
Gold has climbed roughly 70% to a record above $4,450 per ounce, outpacing all major assets. Copper, an industrial bellwether tied to AI and infrastructure demand, has gained 35%, according to TradingView. In contrast, the S&P 500 and Nasdaq have risen 17% and 21%, the 10-year Treasury has fallen 9%, Bitcoin is down 6%, and the dollar index has dropped nearly 10%.
The trend reflects a shift toward tangible assets. Investors are flocking to gold as a safe haven amid fiscal risks, geopolitical tensions, and fiat debasement concerns. Copper has benefited from AI-driven demand, electrification, and constrained supply.
Bitcoin’s underperformance stems from its reliance on speculative, non-sovereign investors rather than institutional or central bank backing. Markus Thielen of 10x Research noted Wall Street remains unconvinced by the “digital gold” narrative.
Despite the lag, some analysts see Bitcoin’s consolidation as setting the stage for a future rally. Lewis Harland of Re7 Capital said the cryptocurrency historically gains momentum after pauses, especially amid rising fiscal and currency concerns.
The copper-to-gold ratio has fallen nearly 20%, its lowest in over 20 years, signaling a fragile, late-cycle economy. Investors appear to be balancing bets on AI-driven growth (copper) and protection against systemic risk (gold), highlighting a clear preference for tangible assets over fiat or speculative holdings.
