Gold's surge suppresses crypto assets, how should investors choose?

This year’s market has exhibited an interesting phenomenon: traditional safe-haven assets like gold and silver have repeatedly hit new highs, while the highly anticipated cryptocurrencies continue to decline. Data shows that Bitcoin has fallen by 10.91% within the year after reaching its all-time high, and Ethereum’s performance is even worse, with a decline of 12%. For investors who are long-term bullish on crypto assets, this undoubtedly presents a significant psychological impact.

The Contrasting Hot and Cold of the Two Major Assets

The strong performance of precious metals markets is particularly noteworthy. Gold has risen nearly 70% in 2025, and silver has also hit new highs. In contrast, Bitcoin, once called “digital gold,” seems to have lost its appeal. This contrast not only shakes the confidence of individual investors but also affects the stock prices of crypto asset management companies.

The Shift in Asset Allocation Logic

Louis Navellier, founder of the investment advisory firm Navellier Associates, offers a new perspective on this phenomenon. He points out that in the current market environment, crypto investors might need to reconsider their asset allocation strategies and consider shifting toward more stable assets like gold. He emphasizes several advantages of gold as an investment tool: ongoing central bank purchases supporting prices, relatively low volatility risk, and increasingly improved liquidity conditions.

Market Skepticism

Well-known investor Peter Schiff has expressed more pointed views on social media. He notes that if Bitcoin cannot rise in tandem with tech stocks or benefit from the surge in precious metals, then its fundamental logic as an investment tool is worth reconsidering. This comment reflects a new understanding in the market regarding the correlation between cryptocurrencies and traditional assets.

The current crypto market should focus on rethinking not how strong gold is, but how to better understand the changing logic of asset allocation and market expectations among different assets.