Gold outpaces Bitcoin in 2025 YTD, but which one should you buy?

Gold prices have surged nearly 10 per cent year-to-date (YTD) in 2025, outpacing Bitcoin, which has slipped over 3 per cent in this period. The recent rally in gold comes as investors seek safe-haven assets following heightened trade tensions and geopolitical uncertainty.

On Tuesday, March 4, gold prices extended their gains after former U.S. President Donald Trump vowed to implement tariffs on trade partners. MCX gold opened higher at ₹85,399 per 10 grams and reached an intraday high of ₹85,518. Meanwhile, spot gold hovered near $2,891 per ounce, following a 1.2 percent jump on Monday.

The surge in gold prices was fueled by concerns over trade tariffs, as Trump announced a doubling of levies on China to 20 per cent and ruled out exemptions for Mexico and Canada. Additionally, geopolitical risks escalated after reports that the U.S. had paused military aid to Ukraine.

Bitcoin Declines Amid Market Volatility

While Bitcoin initially gained traction in early 2025, its rally faltered after growing concerns over U.S. cryptocurrency regulations. The digital asset tumbled nearly 10 per cent on Monday, driven by investor skepticism over Trump’s proposed national cryptocurrency reserve fund. On Tuesday, Bitcoin slid another 2 percent, reflecting a risk-off sentiment.

The cryptocurrency market remains volatile, with Bitcoin’s price fluctuations intensifying amid macroeconomic uncertainty. Despite its long-term appeal, short-term headwinds have prompted a selloff.

Gold vs Bitcoin: What Experts Say

As gold continues its steady rise and Bitcoin faces volatility, investors are weighing the pros and cons of both assets.

Gold’s Safe-Haven Status Strengthens Amid Market Uncertainty

Gold has always been a go-to asset during periods of economic and geopolitical turmoil. In 2025, rising inflation, trade tensions, and concerns over global GDP growth have further reinforced its appeal. According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, gold remains a safe-haven asset, especially in uncertain times. “Gold is always a safe asset class. Particularly during times of high uncertainty like now, gold is a safe haven,” Vijayakumar said.

While Bitcoin has attracted attention due to former U.S. President Donald Trump’s pro-crypto stance, Vijayakumar warned that Bitcoin remains highly volatile and lacks intrinsic value. Instead, he believes equity markets may present a better opportunity once the current uncertainty subsides.

Bitcoin as ‘Digital Gold’? Institutional Demand Soars

Despite Bitcoin’s price swings, some experts argue that the digital asset is emerging as an alternative to gold. Srinivas L, CEO of 9Point Capital, remains bullish on Bitcoin, citing strong institutional adoption and limited supply.

“We at 9Point Capital are very bullish on Bitcoin while suggesting a balanced mix but a definitive exposure to Bitcoin in our investors’ portfolio,” he said.

He noted that Bitcoin has reclaimed its 200-day moving average (DMA) and continues to break key resistance levels. Additionally, Bitcoin ETFs have seen significant inflows, almost matching gold ETFs over the past year, with investments from major institutions like BlackRock, Fidelity, and Grayscale.

Bitcoin’s Sharpe ratio—which measures risk-adjusted returns—has also outperformed gold’s over the last decade (0.92 vs. 0.48), indicating that Bitcoin has historically offered better returns despite its higher volatility.

Gold’s Stability vs Bitcoin’s Volatility

For conservative investors, gold’s relative stability remains a compelling advantage. Aamir Makda, Commodity & Currency Analyst at Choice Broking, emphasised that gold’s lower volatility and strong backing by central banks make it a safer investment.

“Gold’s established history as a safe-haven asset, coupled with its tangible nature, provides investors with stability,” Makda explained.

By contrast, Bitcoin’s extreme price fluctuations pose a significant risk. Recent market movements have seen Bitcoin swing as much as 18 per cent within a $10,000 range, highlighting its unpredictable nature.

Trivesh D, COO of Tradejini, also pointed out that gold’s performance over time underscores its reliability.

“Gold has risen around 12 per cent this year, reaching ₹85,570, while Bitcoin remains 20 per cent lower than its January 2025 high,” he noted.

Historically, gold has provided returns of 178 per cent over the past decade, further solidifying its role as a store of value. Additionally, central banks, including China’s, have been increasing gold reserves for the third consecutive month, further boosting investor confidence.

Gold vs Bitcoin: Which one to Buy?

For those seeking capital preservation, gold continues to be the preferred choice. It remains resilient in the face of macroeconomic challenges and benefits from institutional support.

However, Bitcoin still presents a unique investment opportunity, particularly for risk-tolerant investors. Its limited supply, growing institutional acceptance, and increasing liquidity contribute to its appeal as an alternative asset.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.