Bitcoin Returns to Positive YTD, Reinforcing Its Digital Gold Narrative
Bitcoin (BTC) has surged back into positive territory for 2025, trading around $95,000 after reversing an 18% drop earlier this year. The cryptocurrency has gained 1.5% YTD, placing it between gold, which has climbed 24%, and the Nasdaq 100, which has fallen by 7%.
This shift is seen as a win for the digital gold narrative, with Bitcoin increasingly being viewed as a store of value rather than just a volatile tech asset. The growing correlation between Bitcoin and gold further supports this view, as investors seek assets that can hedge against economic uncertainty.
Bitcoin’s 30-day correlation with gold has risen to 0.70, compared to 0.53 with the Nasdaq 100. This indicates a stronger relationship with gold, reflecting Bitcoin’s potential to become a safe haven asset. Correlation values range from 1 (perfect correlation) to -1 (perfect inverse correlation).
Last week, Bitcoin enjoyed its best weekly performance since November, gaining 10% following President Trump’s victory. This rally has revived investor confidence, as Bitcoin is increasingly seen as an asset that can thrive amid uncertain global markets.
Meanwhile, the broader economic climate remains fraught with concerns, including rising tariffs and trade tensions. The U.S. has raised tariffs on Chinese imports to 145%, which has led to a sharp decline in cargo shipments. Retailers like Walmart have expressed concerns over rising prices and potential supply chain disruptions, further adding to market unease.
