Bitcoin’s 2025 underperformance has prompted a debate about its “digital gold” status. While Deutsche Bank strategist Marion Laboure argues Bitcoin no longer serves this role, Bloomberg ETF analyst Eric Balchunas defends the comparison, pointing to Bitcoin’s historical long-term outperformance and criticizing conclusions based on a single year’s returns. The discussion unfolds as Bitcoin exchange-traded funds see persistent outflows and precious metal funds attract capital.
Senior Bloomberg ETF analyst Eric Balchunas publicly defended Bitcoin’s “digital gold” characterization despite its poor performance relative to physical gold in 2025. He responded to remarks from Deutsche Bank strategist Marion Laboure who suggested Bitcoin no longer fulfills that role. Balchunas stated, “This is a fine argument to make, but to hinge it on one year’s returns is absurd.”
Bitcoin closed 2025 with a 6% loss while gold surged 65%, marking its best annual return in over a decade. The cryptocurrency’s underperformance intensified following a market crash in October, with cycle fears extending weakness into 2026. Historically, Bitcoin has underperformed gold only during bear market years like 2014, 2018, and 2022.
Demand for U.S. spot Bitcoin ETFs has remained muted, with net flows turning negative last November and failing to recover. In contrast, gold ETF flows fell to zero in December but subsequently rebounded, attracting approximately $10 billion. This divergence in institutional investment trends has contributed to Bitcoin’s relative weakness.
A key indicator, the BTC/gold ratio, shows Bitcoin has fallen nearly 70% from its late-2024 peak to a current level of 13 ounces of gold. The ratio’s bullish structure broke last October when it fell below a critical trendline support. This level approaches a key historical support zone near 9, which marked a reversal point during the 2022 bear market.
