This year's investment market has witnessed a rare 'reversal' scenario! According to reports from The Economic Times and LiveMint this week, 2025 is set to be a superstar year for traditional gold, with gold prices having surged over 55% to date, trading above $4,200 per ounce. In contrast, the once-dominant Bitcoin (BTC) has performed relatively weakly this year, recently even retreating from its peak, with annual returns briefly turning negative (-1.2%), making it one of the poorer performers among major assets.
Why is this happening? Analysis indicates that global geopolitical uncertainty, coupled with expectations of interest rate cuts, has led to a frenzy of capital flowing into 'physical safe-haven assets.' When Bitcoin recently pulled back to the $80,000 to $90,000 range, investors seemed more inclined to embrace time-tested real gold. Does this mean the narrative of 'digital gold' has failed? Or is now the perfect opportunity to buy the dip on Bitcoin? Market views are polarized, but it is undeniable that this year 'old-school gold' has indeed dealt a heavy blow to the cryptocurrency sector.