Why Gold and Copper Surpass Bitcoin in the Face of 'Fear and AI' Trends
Table of Contents
You might want to know
- Why are gold and copper skyrocketing compared to Bitcoin in 2025?
- How do AI and economic fears impact asset preferences?
Main Topic
In 2025, gold and copper have made remarkable gains, surprising many investors. Gold reached a staggering high of over $4,450 per ounce, marking a 70% increase, while copper saw gains of 35%. In contrast, Bitcoin, once hailed as digital gold, struggled with a 6% decrease in value. This divergence highlights a growing preference for tangible assets amid the dual forces of AI-driven growth and systemic financial fears.
Investors have gravitated towards gold as a safe haven amid fiscal uncertainties, tariff conflicts, and the devaluation of fiat currencies. Copper, known for its industrial significance, serves as an indicator of global economic health, buoyed by the AI boom and geopolitical tensions. Despite this, Bitcoin has not captured these trends as effectively, partly because its branding as 'digital gold' has not resonated with institutional investors.
Experts argue that the shifting market dynamics are underscored by the evolving narrative of Bitcoin. Markus Thielen, from 10x Research, notes that Bitcoin as a passive allocation story fails to attract sufficient inflow from newer investor cohorts. This reluctance from the sovereign sector further contributes to Bitcoin's underperformance relative to more traditionally tangible assets.
The disparity in performance also points to a potential revaluation of how assets are perceived in the face of complex global challenges. Greg Magadini of Amberdata highlights the lack of sovereign bids for Bitcoin as a core obstacle to its growth. Without this backing, Bitcoin remains more speculative, appealing primarily to higher-risk-tolerant entities like retail investors and hedge funds.
Gold's consistent performance, driven largely by central bank purchases, underpins its continuous appeal as a hedge against currency debasement and fiscal pressures. The central bank actions, particularly in Asia, underscore the ongoing demand for this hard asset, contrasting sharply with the speculative sentiment surrounding Bitcoin.
Key Insights Table
| Aspect | Description |
|---|---|
| Gold Surge | Gold has soared to record highs due to economic fear and central bank purchases. |
| Bitcoin Decline | Bitcoin's narrative fails to attract sovereign investment, limiting growth. |
Afterwards...
Looking ahead, the financial landscape is likely to continue evolving, demanding closer scrutiny of the technologies and asset classes preferred by investors. The rise of AI and systemic fears as investment motivators emphasizes the need for diverse approaches to asset management. Further exploration into how technological advancements and geopolitical shifts reshape financial strategies remains crucial for future understanding.
Bitcoin's journey as a speculative asset suggests potential rediscovery, particularly if it can gain sovereign backing or significantly redefine its technological use cases. Meanwhile, ongoing developments in AI and the broader digital infrastructure are set to redefine industrial and economic paradigms, paving the way for both established and emerging asset classes to pivot accordingly.