The assertion of Bitcoin as "digital gold" has faced scrutiny following its underperformance against physical gold in 2025. This has sparked a debate among analysts regarding the long-term validity of Bitcoin's store-of-value narrative, particularly in light of recent market dynamics.
Reaffirming Bitcoin as 'Digital Gold'
Senior Bloomberg ETF analyst Eric Balchunas strongly defends Bitcoin's status as "digital gold," dismissing arguments that hinge solely on its 2025 underperformance. Balchunas highlights the absurdity of judging Bitcoin's intrinsic value based on a single year, especially when it delivered a staggering 450% gain in the preceding years (2023-2024). Historically, since 2012, Bitcoin has vastly outperformed gold in ten out of twelve years, only lagging significantly during its bear market cycles (2014, 2018, 2022). This long-term perspective suggests that Bitcoin's recent 6% loss in 2025, contrasted with gold's massive 65% surge, represents a cyclical dip rather than a fundamental shift in its "digital gold" characteristics.
ETF Flows Fueling Divergence
The current underperformance of Bitcoin is further exacerbated by muted demand from U.S. Spot BTC ETFs. These exchange-traded funds have experienced negative flows since November, with no signs of recovery as of February 2026. This contrasts sharply with gold ETFs, which, after a brief dip, saw renewed demand translating into a significant $10 billion inflow. This divergence in ETF demand is a critical factor accelerating Bitcoin's decoupling from gold, signaling continued weakness for the cryptocurrency unless its ETF flows experience a significant turnaround to close this gap.
The BTC/Gold Ratio: A Potential Turning Point
Despite recent headwinds, a key indicator—the BTC/gold ratio—suggests that Bitcoin's pullback might be approaching a crucial support level. The ratio peaked in late 2024, reaching 40 ounces of gold, but has since plummeted by nearly 70% to 13, indicating gold's substantial outperformance. However, historical data from the 2022 bear market shows a similar pullback in the BTC/gold ratio easing near 9. This level could serve as a significant support, potentially signaling a reversal and a resurgence in Bitcoin's relative performance against gold in the near future.
