TLDR
- Gold market cap reaches $30 trillion with prices at $4,357 per ounce, 14.5 times larger than Bitcoin’s $2.1 trillion valuation
- Bitcoin up only 16% in 2025 compared to gold’s 64% surge since January, creating largest performance gap in years
- Crypto traders losing money with 66% in short positions and only 35% profitable on major platforms
- $19 billion Bitcoin deleveraging event ranks among largest in history as funding rates hit 2022 collapse levels
- Market analysts expect capital rotation into Bitcoin once gold rally slows down
Gold’s market capitalization hit $30 trillion this week as the precious metal climbed to a record $4,357 per ounce. The milestone makes gold 14.5 times larger than Bitcoin’s current $2.1 trillion market cap.
The yellow metal now exceeds the combined value of the seven largest technology companies by 1.5 times. Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta and Tesla together have a market cap of roughly $20 trillion.
Gold prices have jumped 64% since the start of 2025. Investors are piling into the safe-haven asset due to concerns about dollar weakness, global tensions and trade policies.
Bitcoin has gained just 16% over the same period. The leading cryptocurrency sits nearly 14% below its all-time high despite widespread bull market predictions.
Traders Predict Bitcoin Rally Coming
Crypto analyst Sykodelic observed that gold added over $300 billion to its valuation in one day. The precious metal has been adding the equivalent of Bitcoin’s entire market cap each week.
Market experts believe money will shift into Bitcoin when gold’s rally pauses. Venture investor Joe Consorti suggested Bitcoin could capture value if it breaks its correlation with US stocks and benefits from slowing gold inflows.
Analyst Merlijn the Trader noted that global M2 money supply is rising while gold performs well and Bitcoin remains flat. Historical patterns show this divergence doesn’t last long, with capital eventually flowing into higher-risk assets.
Crypto Market Faces Heavy Losses
Trading data from Hyperliquid reveals crypto traders are poorly positioned. Only 34% of open positions are long, with just 35% of traders making money.
Most traders hold losing short positions as volatility increases across crypto markets. The average user’s daily profit and loss has fallen to approximately $50,000, showing consistent losses.
High-profile trader Machi Big Brother saw his account swing from $43 million in gains to over $13 million in losses. The case demonstrates how excessive leverage on Bitcoin rebound bets continues to backfire.
Record Deleveraging Hits Bitcoin
Research firm Glassnode documented a $19 billion deleveraging event in Bitcoin markets. The company labeled it one of the largest such events in cryptocurrency history.
Funding rates dropped to levels not seen since the FTX collapse in 2022. Bitcoin ETF inflows turned negative while long-term holders sold their positions.
Glassnode cautioned that Bitcoin could fall below $108,000 without fresh demand. The market remains in what analysts call a reset phase following the massive leverage flush.
Prediction platform Kalshi shows traders betting that 2025 will favor gold over Bitcoin. Year-to-date numbers support this view, with gold up nearly 60% against Bitcoin’s 13% gain.
Gold’s performance stems from geopolitical uncertainty, falling inflation expectations and anticipated interest rate cuts. Bitcoin’s structure relies heavily on ETF flows and derivatives leverage, which hasn’t captured the same momentum driving traditional safe-haven demand.
The current market data shows only 34% of Hyperliquid positions are long on Bitcoin, with the majority of traders caught on the wrong side of recent price movements.
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