Gold’s 6% Price drop sparks debate: Is bitcoin poised to shine as the new ‘digital gold’?

Gold vs Bitcoin: Recent Cooldown in Gold May Signal Bitcoin Recovery

The recent 6% drop in gold prices after a strong rally has reignited the debate about Bitcoin’s potential rise as the new “digital gold.” Market dynamics in the gold vs bitcoin landscape show an evolving scene where ETF inflows and technical signals could shift the balance between these two leading safe-haven assets.

Gold’s Pullback and Bitcoin’s Resilience

Gold surged more than 30% since August 2025, reaching nearly $4,400 before slipping 6% earlier this week. This correction follows strong accumulation by central banks and record ETF inflows, which grew from $5 billion to over $35 billion recently.

Bitcoin saw a decline during this period. Its ETF inflows dropped from $20 billion to around $8 billion. This shift from Bitcoin to gold has pressured BTC but also may set the stage for a rebound in the ongoing gold vs bitcoin competition.

BTC/Gold Ratio Indicates Shifting Sentiment

The BTC/gold ratio, which tracks Bitcoin’s performance relative to gold, rose by 8% after gold’s pullback. This indicates Bitcoin has strengthened compared to gold.

Since 2023, the ratio has stayed above key moving averages, showing resilience. It now sits at a critical support level. If this holds, Bitcoin could rally and target a ratio of 37, implying a Bitcoin price near $150,000—a major upside in the gold vs bitcoin context.

Expert Views: Bitwise’s “Gold 2025” Moment for Bitcoin

Matt Hougan, CIO of Bitwise, says Bitcoin may soon have a “Gold 2025” moment. He notes that long-term Bitcoin holders have been selling to ETFs and corporate treasuries. Hougan believes this selling will end. If ETF and corporate buying continues, Bitcoin could see a big surge.

SOURCE : TRADINGVIEW

Hougan points out that gold currently benefits from huge ETF inflows. Bitcoin’s recovery may depend on inflows reversing back to BTC, especially if gold’s price cools further—key in the gold vs bitcoin outlook.

Investment Implications: Balancing Gold and Bitcoin

These trends highlight the need for diversification. Gold remains a reliable safe haven backed by central banks, while Bitcoin offers a new, digital scarcity asset for modern portfolios.

Currently, Bitcoin may be consolidating before renewed institutional interest pushes prices up. If the BTC/gold ratio’s trend continues, investors could find strong opportunities in this evolving gold vs bitcoin market.

SOURCE : INDIATODAY

Conclusion

Gold’s recent cooldown and Bitcoin’s relative strength show a shift in market sentiment for safe-haven assets. Gold keeps strong inflows, but Bitcoin’s digital appeal and ETF growth position it as a serious “digital gold” contender. ETF trends, the BTC/gold ratio, and institutional buying will shape investments in late 2025 and beyond in the gold vs bitcoin debate.