Gold Outperforms Bitcoin Over Five Years

Gold has outperformed Bitcoin over the past five years, rising by approximately 185%.

The leading cryptocurrency has entered the “red zone,” while gold has gained 4.4% in a day. The market valuation of the precious metal has increased by $1.5 trillion, a figure comparable to the entire market capitalization of Bitcoin.

The price of a troy ounce has reached a historic high above $5500, with the total market value of gold hitting $38 trillion.

Silver has also shown growth, rising by approximately 22% over the past week. Its market capitalization has reached $6.6 trillion.

The multi-month rally in metals is attributed to hedging against the depreciation of fiat currencies. Bitcoin appears weak in this context, casting doubt on the “digital safe haven” narrative. Its prices have not recovered since the plunge in early October, which triggered $19 billion in liquidations.

The lag is evident over the long term: over the past five years, gold has risen by approximately 185%, outpacing Bitcoin’s ~164% growth.

Despite this, major players remain optimistic. A Coinbase survey revealed that 71% of institutional investors view Bitcoin as undervalued in the $85,000-95,000 range.

About 80% of respondents are willing to hold or increase their positions if the market drops another 10%.
Sentiments in the sectors are diametrically opposed. The Crypto Fear and Greed Index stands at 26 (“fear”).

A similar indicator for gold from JM Bullion has reached 99 points, indicating “extreme greed.”

Back in January, precious metals surpassed cryptocurrencies in social media popularity.