Bitcoin (BTC) has had a rough year in 2025, falling behind gold, whose market cap recently reached a record $20 trillion. Investors are wondering whether Bitcoin can retake its leadership as "digital gold," given its YTD change of -10.2% and gold's explosive 13.5%.
Fundstrat co-founder Tom Lee is still optimistic, even though the market got off to a slow start. He thinks Bitcoin will be the best-performing asset of 2025 and could reach $150,000. Can Bitcoin, though, really beat gold this year? Look at the main market trends, what experts think, and what they think the prices will be.
January 2025: BTC started the year at $93,536.41, gaining 9.54% before experiencing a sharp correction.
February 2025: A -17.55% drop rattled the market, pushing BTC into negative YTD territory.
March 2025: Bitcoin briefly hit $95,152 on March 2 before experiencing two major corrections: -8.70% (March 3) and -13.50% (March 6-10).
Current BTC Price: $83,745, down 23.45% from its all-time high.
Gold demand is surging due to rising geopolitical tensions and economic uncertainties:
US Gold Imports: Surged to $30.4 billion in January 2025.
China & India Reserves: New highs at $73.5 billion and $70.9 billion.
Global Demand: Up 24% YoY, surpassing $382 billion.
Best Hedge Asset: 58% of investors (BofA survey) now favor gold over the US dollar.
This strong demand has propelled gold to new highs, raising concerns about Bitcoin’s ‘store of value’ status.
Despite Bitcoin’s early struggles, historical trends suggest a potential rebound:
2024 Performance: BTC surged +122%, outperforming gold’s 27.80% rise.
Institutional Interest: Bitcoin ETFs and increasing adoption by major financial firms could drive a recovery.
Halving Effect: The Bitcoin halving in 2024 may set off a significant late-half 2025 rally.
Source: TradingView
Tom Lee is still convinced about the long-term possibilities of Bitcoin even though he projects BTC will reach $150,000 this year. He is still a highly respected financial sector analyst even if his past predictions have been contradicting.
Although the first-quarter performance of Bitcoin has been poor, long-term trends show great strength. BTC's comeback might be driven by institutional adoption, scarcity, and macroeconomic patterns. Gold is a difficult rival, though, given its predominance as a hedge asset.
If Lee’s prediction holds, BTC could still become the best-performing asset of the year. But for now, gold remains in the spotlight. Will Bitcoin reclaim its throne? Stay tuned!
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