Bitcoin Falters as 'Fear and AI' Trades Crown Gold and Copper Kings of 2025

Investors navigating 2025 have found an unlikely consensus: tangible assets are in, and Bitcoin is out. Gold and copper have dramatically outperformed major assets this year, propelled by the paradoxical market forces of systemic financial fear and an AI-driven boom. Bitcoin, meanwhile, has failed to capture either narrative, trailing far behind.

A Tale of Two Metals

The performance divergence is stark. Gold, the classic fear hedge, has soared by to a record high above per ounce. Copper, an industrial linchpin for the AI and electrification boom, is the second-best performer with a gain, according to TradingView data. In contrast, Bitcoin is down . Other major assets tell a similar story of underperformance relative to hard assets: the S&P 500 and Nasdaq are up and respectively, while the 10-year Treasury note has lost .

The fact that polar opposites—gold as a hedge against chaos and copper as a bet on progress—are leading the pack suggests a profound 'flight to tangibility' amid concerns over fiat debasement, fiscal policy under the presidency, and geopolitical tensions.

Why Bitcoin Missed Both Rallies

Bitcoin's core problem seems to be a narrative failure. According to , founder of 10x Research, the "digital gold" narrative hasn't fully convinced Wall Street. "Many crypto narratives marketed to institutional investors now resemble passive allocation stories... rather than compelling use-case–driven growth themes," told CoinDesk.

Adding to this, Bitcoin lacks a key driver of gold's recent strength: a sovereign bid. "Gold is the 'hard asset' for global central banks and sovereign players," explained , director of derivatives at Amberdata. While central banks have snapped up of gold this year (Jan-Oct), Bitcoin remains the domain of retail and hedge funds. For Bitcoin's next leg up, believes "sovereign adoption" is necessary.

Consolidation or Weakness?

Not everyone sees this as a bearish sign. , a portfolio manager at Re7 Capital, argues Bitcoin is simply "building energy." He suggests gold leads BTC by about 26 weeks and that gold's strength signals market pricing for "further currency debasement and fiscal strain into 2026." This backdrop, he believes, has historically supported both assets, with Bitcoin responding with greater force. "The longer BTC sits tight, the more explosive the eventual move tends to be," said.