As gold takes the spotlight, Bitcoin investors' confidence faces a test

The precious metals market has performed remarkably this year, with gold and silver reaching new highs recently, attracting a large influx of capital. In stark contrast, Bitcoin, known as “digital gold,” has underperformed this year, with the latest data showing a 4.20% decline over the past year, and Ethereum dropping even more by 5.26%. The entire cryptocurrency market is shrouded in a pessimistic atmosphere.

Traditional Safe-Haven Assets Remain Strong, Digital Assets Struggle

Gold has risen nearly 70% in 2025, demonstrating the strong appeal of traditional safe-haven assets, while the cryptocurrency market continues to undergo adjustments. This contrast has begun to shake investor confidence and has led to a significant decline in the stock prices of listed crypto asset management companies. Industry insiders are starting to reflect on whether cryptocurrencies, once hoped to be revolutionary assets, truly have the foundation to serve as long-term investments.

Experts Change Their Tune: Turning to Gold Might Be a Wise Move

Louis Navellier, founder of investment advisory firm Navellier Associates, recently pointed out that in the face of the strong rise in gold prices and the continued sluggishness of cryptocurrencies, investors should consider adjusting their strategies. He emphasized that gold has advantages such as central bank support, relatively moderate volatility, and ample liquidity. In comparison, the performance of cryptocurrencies has been disappointing.

Meanwhile, well-known investor Peter Schiff also shared his views on social media, posing a sharp question: if Bitcoin failed to rise in tandem with tech stocks, and also stalled when gold and silver surged significantly, then when will it truly appreciate? This skepticism reflects deep doubts in the market about the future direction of cryptocurrencies.

New Perspectives on Asset Allocation

The sharp rise in gold highlights the resilience of traditional safe-haven assets, while the performance of Bitcoin and Ethereum has left many believers feeling disappointed. This divergence in market performance may prompt investors to reevaluate their asset allocation strategies, and when considering crypto exposure, to assess its risk-return profile more cautiously.