Bitcoin Regains $90,000 Price Level, Signalling a Potential Resurgence of the “Digital Gold” Narrative

So far in 2025, gold has surged 30%, reaching all-time highs as investors flock to safe havens amidst tariff uncertainty. On the other hand, Bitcoin has recently regained the $90,000 price level, signalling a potential resurgence of the “digital gold” narrative.

As the saying goes, “Don't put all your eggs in one basket.” However, when it comes to investing, aiming for complete diversification by including a broad range of asset classes in your portfolio is a common piece of advice.

But according to a recent analysis by BlackRock, a well-known investment firm, a surprising asset class has consistently outperformed major asset classes over the last seven out of 10 years. The stellar performer in question? Bitcoin, the cryptocurrency.

In a 2024 report titled “Bitcoin: A Unique Diversifier,” BlackRock highlighted the unique properties of Bitcoin as a decentralized, scarce, and non-sovereign global asset, suggesting it could serve as a safe haven in times of market stress.

In periods of volatility, such as declining stock prices or economic instability, uncorrelated assets can be valuable additions to a portfolio as they may not necessarily decline in value at the same rate.

Historically, Bitcoin has shown little correlation with major asset classes, including U.S. equities (represented by the iShares CORE S&P 500 Total Market ETF (IVV) and the iShares Dow Jones US Total Stock Market (IIV7)).

The chart from TradingView compares the price performance of the iShares Bitcoin Trust (IBIT) and the iShares Gold Trust (IAU). Since January 2024, Bitcoin has outperformed gold. While the Bitcoin ETF has gained 116%, the gold ETF is up 68%.

This year, Bitcoin is lagging behind gold, which has surged 30% so far in 2025 to reach all-time highs as investors seek safe havens amid tariff uncertainty.

However, considering the longer-term picture, Bitcoin has still outperformed in the past year.

During periods of geopolitical and economic turmoil, Bitcoin has shown an ability to outperform gold.

According to BlackRock's analysis of six major global events, including the outbreak of COVID-19 and the Russia-Ukraine war in 2022, over 60-day periods following these events, Bitcoin outperformed gold in five out of six cases.

This year, April 2, known as “Liberation Day,” marked an inflection point for Bitcoin. After weeks of stagnation, Bitcoin suddenly surged, defying concerns surrounding global trade wars and debates over interest rates.

As the cryptocurrency market continues to navigate a period of uncertainty, Bitcoin's ability to generate returns in times of instability may once again prove relevant.