Gold outperformed Bitcoin in returns over five years - ForkLog: cryptocurrencies, AI, singularity, future

# Gold Outperformed Bitcoin in 5-Year Returns

The first cryptocurrency has entered the “red zone,” while gold gained 4.4% in a single day. The market valuation of the precious metal increased by $1.5 trillion — an amount comparable to the entire market capitalization of Bitcoin.

Top assets by market capitalization. Source: Infinite Market Cap. The price of a troy ounce hit a record high above $5500, and the total market value of gold reached $38 trillion.

Silver also showed growth, rising by approximately 22% over the past week. Its market capitalization amounted to $6.6 trillion.

The multi-month rally in metals is linked to hedging against the devaluation risks of fiat currencies. Bitcoin appears weak in this context, casting doubt on the narrative of it being a “digital safe haven.” Prices have not recovered after the October crash, which caused liquidations of $19 billion.

The lag is also noticeable over the long term: over the past five years, gold has increased by approximately 185%, outperforming Bitcoin (~164%).

Despite this, major players remain optimistic. A Coinbase survey showed that 71% of institutional investors consider Bitcoin undervalued in the range of $85,000-$95,000.

About 80% of respondents are willing to hold or increase their positions if the market drops another 10%.
Sentiments in the sectors are diametrically opposed. The cryptocurrency fear and greed index stands at 26 (“fear”).

Source: Alternative. A similar indicator for gold from JM Bullion reached 99 points, indicating “extreme greed.”

Source: JM Bullion. Recall that in January, precious metals surpassed cryptocurrencies in social media popularity.