Strong Performance of Gold and Bitcoin in 2025

Gold has been one of the strongest performing assets in 2025, rising 38% year to date, outpacing Bitcoin’s 23% advance. However, Bitcoin has significantly outperformed gold (and almost everything else) considering its short lifespan.

A comparison of these two popular inflation-resistant assets against the U.S. money supply measure (known as M2) provides additional insights regarding their performances.

When adjusted for M2 growth, gold—despite its recent strong performance—remains below its 2011 peak and is roughly at the same level it was in 1975. The all-time high for gold against M2 occurred in 1980.

Conversely, Bitcoin tells a different story. Each bull cycle has seen BTC reach a record compared to M2, including last month when Bitcoin achieved both an absolute all-time high and a new record relative to the money supply.

This contrast may highlight the different roles these assets play. Gold remains a long-standing hedge and stabilizer in portfolios, while Bitcoin’s behavior reflects how new forms of money react to rapid monetary expansion.