Bitcoin is often called “digital gold,” reflecting its role as a store-of-value hedge, a function associated with gold for thousands of years. Despite Bitcoin (a digital asset) and gold (a physical asset) sharing traits, they don’t always move together. 

Both assets can rally for similar reasons, including inflation fears or currency uncertainty, but they can also diverge sharply depending on what the market cares about most: interest rates, liquidity, risk appetite, or investor positioning.

Bitcoin Vs. Gold Correlation

From November 2022 to November 2024, Bitcoin and gold were generally headed in the same direction. During that time, gold climbed about 67%, while Bitcoin jumped to nearly 400%. That tight correlation led analysts to expect the pair to keep moving together as alternatives to fiat during volatile monetary conditions. 

The correlation between the two assets began to break in 2025. By late March, gold was up 16%, while Bitcoin had fallen by over 6%, a clear sign that “digital gold” doesn’t always track its original.  

Do Gold and Bitcoin Move Together?

Gold and Bitcoin can move together, especially during periods when investors worry about inflation or lose confidence in government-issued currencies. However, this correlation is inconsistent and can shift dramatically. 

During financial panics, gold typically rises while Bitcoin often sells off alongside stocks, revealing that Bitcoin still trades more like a speculative tech asset than a traditional safe haven.  However, Bitcoin can outperform gold significantly during bull markets, capturing both safe-haven flows and growth-oriented capital. 

Comparing Bitcoin and Gold: Key Differences and Similarities 

Gold has been the main safe haven asset for thousands of years, while Bitcoin was launched in 2009 and gained mainstream adoption several years later. Investors need to understand the differences and similarities between the two assets to decide which to include in their portfolio. 

Rarity

Both gold and Bitcoin are scarce assets. Bitcoin’s supply is limited to 21 million coins, and it is expected to be fully mined by 2140. The exact amount of gold remains uncertain, but its clear rarity continues to drive demand. 

Volatility 

Gold is considered a more stable asset, historically demonstrating greater resistance to sudden equity market downturns. Bitcoin is known for its high volatility, which is driven by sentiment, leverage, liquidity shifts, and regulatory actions.

Bitcoin hit record highs in 2024, breaking the $100,000 mark and peaking above $120,000 by mid-2025. The rally was fueled by strong buying interest from both institutional players and everyday investors. However, in early 2025, Bitcoin saw sharp corrections, losing more than 30% of its value amid economic volatility and geopolitical tension.

Mining Costs

Mining either asset is expensive. Bitcoin mining requires significant energy consumption and substantial investment. Miners spend heavily on specialized hardware that depreciates rapidly. Gold mining is equally expensive, with total production costs typically ranging from $1,150 to $1,400 per ounce. 

Regulation and Ownership

Gold is a heavily regulated commodity, typically purchased through registered dealers and brokers. But once purchased, investors should ensure it is transported and stored safely. While gold is widely accepted and easy to verify when handled correctly, many countries restrict carrying significant amounts across borders without proper declarations.

Bitcoin regulation, by contrast, is still evolving and varies widely by jurisdiction. Bitcoin is easy to transfer across borders and can be purchased quickly. The risks investors should consider are operational, including key management, hacks/phishing, exchange custody risk, and irreversible transactions if funds are sent to the wrong address.

Utility of Gold and Bitcoin

The two assets have a variety of uses that help maintain their value. People use gold in many ways, including luxury items, currency, and electronics. Bitcoin’s utility is primarily digital: it can be used for payments and transfers, and it is widely used as collateral and a settlement asset within crypto markets.

Is Bitcoin Safer Than Gold?

Gold and Bitcoin carry different types of risks. Blockchain technology provides security for Bitcoin, but doesn’t protect it from operational risks and market volatility. Gold is less volatile and has a well-established trading infrastructure, but its storage and transportation include higher risks. 

Conclusion

The relationship between Bitcoin and gold isn’t fixed. They can rise together as alternative stores of value or diverge sharply because Bitcoin is more sensitive to risk appetite and market liquidity. Gold is deeply embedded in institutional portfolios and central bank reserves, while Bitcoin is still working through regulatory uncertainty. Gold remains the traditional store of value, and Bitcoin serves as a higher-volatility “digital gold” that can behave differently depending on the macro environment.