Bitcoin Gold Divergence 2025 highlights a contrasting performance between the two assets, with gold leading the market. In the last few months of 2024, Bitcoin took off after a Trump-fueled campaign gathering. Unsurprisingly, it did a fantastic job this year, making over $100,000. Since November 3, Bitcoin’s price has gone up about 50%.
Other assets have also increased, with Dogecoin’s price increasing twice as much. While Crypto assets had a fantastic run near the end of the year, gold has been the clear winner and has had a fantastic year. The price of the valuable metal went up by 28%, which made buyers turn back to it as a haven as economic and political pressures rose. Gold began the year at $14. It had a fantastic year with many highs before reaching $2,719 in late November.
Gold’s Record Surge
Gold increases and financial assets fall. Investors know the market and don’t mind the $2,603 drop. Despite Western geopolitics and inflation, gold investors foresee a strong 2025. Gold Bullion Company Managing Director Rick Kanda termed the 2024 asset increase unprecedented. “There’s no denying 2024 was a record year for gold,” he notes. He hopes for the precious metal next year. Height and record dropped. We blamed economic uncertainty, global inflation, and increased demand.
When investors invest less, gold trumps bonds and equities. Multiple things make gold valuable. Tech, money, and diamonds are assets. Bullion Vault, a British gold market, says investors fear a global recovery next year. Numerous issues plague Trump. The site advises customers to consolidate, not sell. This business user survey estimates $3,070 in assets by 2025. Many think geopolitics and economics created yellow metal.
Trump’s Bitcoin Reserve Plan
Most people hold gold because of the economy and rising global issues, but some also keep it because of the rise in government debt. Economies all over the West are running big deficits right now because countries need to spend more to keep their economies growing. This trend started to show up in 2007–2008, and the pandemic made it worse. At the same time, Donald Trump may be counting on his newfound love of Bitcoin. Most governments are trying to set up their own Bitcoin reserves, but the US wants to be the first. The next President, Donald Trump, recently revealed a national Bitcoin reserve. This came after Bitcoin hit $100,000 for the first time.
In his New York Stock Exchange (NYSE) speech, Trump stated that Bitcoin could benefit the US. It was always important for the next President of the United States to be ahead of other countries. He expressed the same sentiment. “We’re going to do something great with Crypto because we don’t want China or anyone else…” “Some people are on board with it, but we want to be ahead,” he said. Some people don’t like the idea, though, as they have found flaws in the plan.
Some people don’t trust the move and think the US government is being silly. They believe the plan will raise borrowing costs, which could hurt the country. If it happened, the dollar would lose value because inflation would rise even more. A Bitcoin reserve could also make it easier for banks to accept Bitcoin, letting customers use the asset as collateral for loans. If the item’s value goes down, it could cost the bank a lot of money.
Related: Russia’s Bitcoin Mining Ban Impacts Crypto Trade And Investment
Summary
In 2024, Bitcoin saw significant gains, particularly toward the end of the year, driven by a rally fueled by Donald Trump’s campaign. However, gold emerged as the standout asset, surging by 28%, making it a preferred haven for investors amid rising economic and geopolitical tensions. Despite a drop in gold prices to $2,603, investors remain optimistic for a strong 2025, with experts like Rick Kanda praising the record-breaking year for gold. Experts attribute gold’s rise to its value as a hedge against inflation, geopolitical instability, and growing government debt.
Many Western countries face large deficits, and the trend that started during the 2007–2008 financial crisis has worsened, especially post-pandemic. Meanwhile, Donald Trump has expressed a strong interest in Bitcoin, even proposing a national Bitcoin reserve after the cryptocurrency hit $100,000. He emphasized the importance of the US staying ahead in the Crypto race. However, some critics are concerned about the potential risks, such as increased borrowing costs and the volatility of Bitcoin, which affect financial institutions.
