Bitcoin vs. Gold 2025 retrospective

Here is a Bitcoin vs. Gold retrospective of the year 2025. Given the Bitcoin market especially after 10/10, gold outperformed Bitcoin overall. However, the most important thing for investors is that the correlation was still low at just 0.12 for 2025 between Bitcoin and gold. So even if you have precious metals in your portfolio, Bitcoin provided diversification benefits, improving the Sharpe ratio of your portfolio, even in a down year.

There are other interesting things for investors that want to dig deeper, such as how both Bitcoin and gold in 2025 deviated substantially from normal distribution of returns that is assumed by the traditional investing world. This basically means both of them had "fat tails".