Yardeni elaborated, stating, “Bitcoin has been described as ‘digital gold,’ but we would describe gold as ‘physical bitcoin.'” He emphasized that risk-averse investors may be recognizing gold as a superior hedge against geopolitical uncertainties compared to bitcoin. Gold has a long-standing history as a protective asset, while bitcoin’s relatively short existence has primarily positioned it as a speculative investment.
Both assets have shown impressive returns this year, but gold has significantly outperformed bitcoin. The yellow metal has surged by 60% in 2025, while bitcoin has seen a more modest increase of about 20%. For context, bitcoin’s performance has closely mirrored that of the Nasdaq Composite, which is home to many of Silicon Valley’s leading artificial intelligence companies. In contrast, gold has distinguished itself with remarkable strength, particularly over the past month, gaining over 13% while bitcoin has experienced a decline of 3%.
Over the past week alone, gold has rallied nearly 4%, whereas bitcoin has tumbled by 9%, and the Nasdaq has slipped nearly 1%. Yardeni has set an ambitious price target for gold, forecasting it could reach $4,000 by 2025—a milestone it has already surpassed, recently exceeding the $4,200 mark. He predicts that gold could climb to $5,000 in 2026 and potentially hit $10,000 by the end of the decade or even sooner.
The recent downturn in bitcoin’s value can be attributed to liquidity challenges, with approximately $19 billion in liquidations occurring in futures and leveraged positions. Yardeni explained, “Some platforms triggered auto-deleveraging to manage risk, forcing even winning or hedged positions into closure to protect broader exchange balance sheets.” As prices plummeted, market-makers and larger players withdrew or reduced their activity, leading to wider spreads and complicating the ability of buyers to absorb the influx of sell orders.
In stark contrast, gold experienced a rally last Friday following President Donald Trump’s announcement of potential 100% tariffs against China, while bitcoin saw a decline. “Investors seeking protection from mounting geopolitical risks have been heading for the hills to mine for gold as well as for silver,” Yardeni noted.
