Gold Soars to Record Highs as Bitcoin Struggles, Highlighting a Familiar Market Pattern
On March 17, 2025, gold has surged to a new all-time high, surpassing $3,025 per ounce, marking a 15% increase since the start of the year. Meanwhile, Bitcoin (BTC) is trailing behind, down 10% year-to-date.
Several factors have driven gold’s impressive rally, including strong inflows into gold exchange-traded funds (ETFs) and its longstanding role as a safe-haven asset during times of geopolitical unrest. The potential for new tariffs under President Trump has also sparked demand for U.S. equities, further bolstering gold’s upward momentum. Gold’s price has risen by 40% year-over-year, significantly outperforming Bitcoin’s 16% gain during the same period.
Historically, when gold enters a bull market, Bitcoin tends to stagnate or decline. While both assets occasionally experience simultaneous rallies or drops, these instances are relatively rare. During the bull runs of both gold and Bitcoin from 2019 to 2020, gold led the market, and Bitcoin followed in late 2020, entering its own bull run while gold took a breather. As global interest rates began to rise in 2022, both assets faced downward pressure before recovering in 2023 and 2024. In 2025, the market is witnessing another divergence, with gold outpacing Bitcoin.
Charlie Morris, founder of ByteTree, has referred to this rally in gold as a “proper gold rush,” something not seen since 2011. He stated, “Gold above $3,000, silver above $24, and gold stocks gaining momentum—this is a gold rush the crypto community hasn’t witnessed. The last time it happened was in 2011 when Bitcoin was still emerging at $20. Now, they’ll experience it firsthand.”
