Gold vs. Bitcoin: Performance Through the Lens of Money Supply

Gold has had a strong run in 2025, rising 38% year-to-date and outpacing bitcoin’s 23% gain over the same period. Yet when measured against a broad indicator of U.S. money supply (M2), gold has not reached a new high relative to liquidity since 2011.

Adjusted for M2 growth, gold remains roughly at the same level it held in 1975, with its all-time peak against money supply recorded in 1980. Despite recent gains, this underscores gold’s role as a long-term hedge rather than a high-growth asset.

Bitcoin paints a different picture. During each bull cycle, BTC has reached record highs not only in nominal terms but also relative to M2, including last month when the cryptocurrency set both absolute and relative new highs.

The divergence highlights the distinct roles of the two assets. Gold continues to function as a stabilizing portfolio hedge, while bitcoin’s performance reflects how newer forms of money can respond dynamically in an era of rapid monetary expansion.