Bitcoin overtakes gold in price — investors change course

On Monday, May 19, 2025, Bitcoin experienced a significant breakthrough, reaching a price of $106,000 to $107,000 per coin. Although it failed to reach an all-time high, the price of bitcoin surpassed the cost of a kilogram of gold for the first time this year, which is approximately $103,500. This marked a significant moment in the competition between the two assets, which are often compared for their ability to retain value during economic instability.

Although a correction later took place, the temporary superiority of "digital gold" over physical precious metal is significant, according to experts from the financial portal Traders Union.

Historical context: how the price has changed

Gold has shown steady growth over the past decade. In 2015, the price of a kilogram fluctuated around $34,000; by 2025, it had surpassed $100,000.

However, over the same period, Bitcoin has come a long way — from a few hundred dollars to over a hundred thousand dollars per unit — amid fluctuations, regulatory pressure, and global skepticism.

Who is investing in gold?

Gold retains its reputation as a stable asset during times of instability. Central banks, institutional investors, and large corporations actively buy it up to diversify their foreign exchange reserves. China is the most illustrative example, having increased its gold reserves for six consecutive months. As of early May, these reserves reached $243.6 billion.

Gold is also in demand among cryptocurrency companies. For instance, Tether, the issuer of the USDT stablecoin, purchased 7.7 tons of gold to back the XAUT token.

Other market participants use a similar model: Paxos has the PAXG token, Aurus has the AWG token, and Asia Broadband has the AABB Gold token. Thus, gold is gradually being integrated into the digital ecosystem as well.

Why Bitcoin is going up?

Despite gold's popularity, the balance of power in the market began to shift in 2025. JPMorgan analysts describe this as a zero-sum game, meaning that the rise in bitcoin's value often occurs alongside a decline in gold prices. From February to April, gold was in the lead, but the trend recently changed.

Over the past month alone, Bitcoin has increased in value by 18%, while gold has fallen by nearly 8%. This shift is also evident in capital flows: investors are pulling out of gold ETFs and investing in bitcoin funds. Digital currency is becoming an increasingly attractive option for storing strategic capital.

Strategic purchases of Bitcoin

Bitcoin is supported by market trends and the activity of major players. For instance, Strategy and Metaplanet are increasing their Bitcoin holdings as part of a long-term strategy. Even some states within the USA are joining the game. New Hampshire and Arizona are considering adding cryptocurrencies to their reserves.

Furthermore, the cryptocurrency infrastructure is developing rapidly. Exchanges such as Coinbase, Kraken, and Gemini are strengthening their positions in the derivatives market, creating conditions for greater liquidity and the attractiveness of digital assets to institutional capital.

The future of these two assets

The market situation in 2025 demonstrates a paradigm shift. Bitcoin has outperformed gold in terms of value and has begun to attract investor attention. The outflow of capital from gold funds and growing interest in cryptocurrency assets indicates that "digital gold" is increasingly seen as a modern alternative to traditional gold.

However, gold retains its value as a time-tested asset, especially for conservative investors and central banks. Meanwhile, Bitcoin's decentralization, scarcity, and technological advantages make it look like the asset of the future.

As a reminder, earlier we covered:

Trillions on hold — investors are withdrawing funds from the US.

Cryptocurrencies, stocks, or real estate — how to invest in 2025.