Bitcoin Could Be a Superior Store of Value to Gold as BTC/Gold Ratio Reaches Historical Lows

• Bitcoin’s supply growth is tightly controlled relative to gold’s annual mined and recycled stock, reducing inflationary pressure.

• BTC/GOLD ratio signals have hinted bottom patterns, historically preceding major Bitcoin rebounds according to market analysts.

• Growing institutional interest and ETF flows underpin Bitcoin’s price resilience amid macro uncertainty.

Bitcoin as a store of value gains traction; scarcity and institutional demand rise, while gold requires far larger inflows to hold prices. Global momentum.

What is Bitcoin’s role as a store of value in 2025?

Bitcoin as a store of value is defined by its capped supply and transparent issuance, contrasting with traditional inflation hedges. In 2025, institutions increasingly view BTC as an inflation hedge and diversification tool, supported by ETF flows and ongoing demand signals. As Bitwise CEO Hunter Horsley noted, “Gold needs a lot of new buyers to keep prices stable or higher. I expect Bitcoin will be the better store of value.”

How does BTC compare to gold as a store of value?

Bitcoin offers scarcity-driven value with a fixed supply of 21 million coins and a predictable issuance schedule, whereas gold’s supply expands with mining and recycling. Data points from 2024 show 3,660 tons of gold mined and 1,370 tons recycled, equating to roughly $680 billion in new gold that buyers would need to absorb just to keep prices stable. In contrast, the new supply of Bitcoin runs about $24 billion annually, roughly 164,000 BTC mined per year, creating a structural edge for Bitcoin’s scarcity and potential long-term price support. Horsley further emphasized the contrast: “Gold needs a lot of new buyers to keep prices stable or higher. I expect Bitcoin will be the better store of value.”

Traditionally, these events were followed by sharp Bitcoin falls with subsequent strong rebounds. Hayes echoed the sentiment, describing the environment as one of the most compelling in years for those seeking exposure to Bitcoin over traditional safe-haven assets: “We’re exactly there right now.”

Bitcoin struggles through “broken October”

Despite the optimism, Bitcoin has not met the expectations of traders in October. Traditionally known as “Uptober,” the month has historically been a powerhouse of gains, but 2025 has shattered the pattern. Bitcoin is down over 25% since early October, from above $126,000 to near $100,000, amid rising global risk aversion and a resurgence of U.S.-China trade tensions.

At the time of writing, Bitcoin (BTC) was around $111,347, after a 4.19% daily rise but still down 53.37% on the week and 8.23% on the month. The longer-term view remains constructive with the six-month index up 25.46% and the last 12 months up 58.61%, supported by continued institutional demand and ETF flows. Gold sits near record highs as macro uncertainty and geopolitical risk keep demand elevated—near $4,254 per ounce after a high near $4,380, up about 62.05% year-to-date and 123.97% over five years.

In this backdrop, institutional buyers and hedge strategies continue to diversify toward Bitcoin, even as traditional safe-haven assets face competing drivers. The broader market narrative remains that scarcity, regulatory clarity, and evolving investment products could sustain Bitcoin’s relative strength against gold over the medium term.

Frequently Asked Questions

What long-term factors could sustain BTC’s strength versus gold?

The long-term case centers on Bitcoin’s capped supply, predictable issuance, and growing institutional interest, alongside ETF flows and increasing recognition as a diversified inflation hedge. While gold benefits from deep historical trust, Bitcoin’s measured supply growth and evolving macro hedges position it as a persistent alternative in a shifting risk environment.

How might the BTC/Gold ratio influence trade decisions?

Analysts point to bottom‑signal patterns in the BTC/Gold ratio as potential markers for Bitcoin rebounds, particularly after episodes of drawdown. While not guaranteed, these signals have historically preceded meaningful upside moves for BTC as risk sentiment shifts and macro pressures evolve.

Key Takeaways

• Bitcoin scarcity advantage: A fixed supply and predictable issuance support a potentially stronger long‑term store of value narrative.
• BTC/Gold ratio indicators: Bottom‑signal patterns suggest potential rebounds for BTC in volatile periods.
• Institutional demand: ETF inflows and hedge strategies continue to bolster Bitcoin’s resilience amid global uncertainty.

Conclusion

Bitcoin’s role as a store of value is reinforced by supply discipline and rising institutional adoption, even as gold remains a cornerstone of diversification. The evolving landscape signals continued interest from institutions and a continuing debate on which asset best preserves wealth over time. COINOTAG will continue to monitor developments and publish timely updates to inform investment decisions.

COINOTAG — Author and Organization

Publication date: 2025-10-20 | Last updated: 2025-10-20

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