In 2025, funds in the cryptocurrency market have shifted to gold, primarily because gold's stability and safe-haven properties align with the market's demand for certainty. Additionally, the risks within the cryptocurrency market and changes in the global financial environment have also driven this shift, with the specific reasons as follows:
1. The volatility and risks in the cryptocurrency market are hard to alleviate: the high volatility of cryptocurrencies like Bitcoin has not improved, with a single-month decline of 9% in October 2025, and the recovery trend after the price drop at the end of 2024 remains uncertain, raising doubts about its speculative nature. Furthermore, cryptocurrencies face risks such as uncertain regulatory policies and vulnerability to cyber attacks due to reliance on digital infrastructure, which deter investors seeking capital preservation.
2. The hedging and appreciation advantages of gold are highlighted: In 2025, gold prices soared, nearing $4,000 per ounce, with a yearly increase of nearly 40%, far exceeding Bitcoin's 20% rise. Gold has been recognized as a safe-haven asset for thousands of years and has a low or negative correlation with cryptocurrencies. In the context of frequent geopolitical conflicts and rising global economic debt, even if cryptocurrency assets plummet, gold often remains stable or even appreciates.
3. Erosion of confidence in the fiat currency system: Trump's ongoing attacks on the independence of the Federal Reserve have left the market worried about the long-term credibility of the dollar. Large stablecoins like Tether, which were originally backed by dollar assets, are now also facing potential risks from the dollar system. This has led to discussions about investing in gold mines and establishing a gold industry chain, with such top projects driving the overall interest and layout of the cryptocurrency sector towards gold.
4. Institutional behavior guides market trends: In 2025, global institutions increased their holdings by 146 tons of gold in a single month, and gold ETFs experienced record inflows. The large-scale purchasing of gold by institutions has reinforced the asset value of gold. Seeing this trend, cryptocurrency investors have also started to shift some of their crypto assets towards gold to create a more robust investment portfolio.
