In 2025, financial markets are witnessing changes in asset attributes. Bitcoin, once known as digital gold, now shows higher correlation with tech stocks, while gold regains popularity as a safe-haven asset among investors.
Changes in Bitcoin and Stock Correlation
For a long time, bitcoin's correlation with traditional stock markets was low, making it an attractive asset for portfolio diversification. However, since 2025, its correlation with tech stocks has sharply increased, reaching 0.5-0.8, indicating that bitcoin is now seen more as a growth asset influenced by market dynamics.
Comparison of Bitcoin and Gold as Safe-Haven Assets
Traditionally, gold has been used as a hedge against inflation and economic uncertainty, offering stability and value preservation. Bitcoin, as a digital asset, still faces debate over its safe-haven characteristics due to its significant volatility. For example, in 2024, gold rose by 8% while bitcoin fell by 24%.
Portfolio Strategy Considerations
Investors should consider the differences between bitcoin and gold when developing portfolio strategies. While bitcoin is suitable for high-risk, high-reward investments, gold remains a stable safe-haven. Diversifying portfolios by including both assets can be achieved due to their unstable correlation.
Despite bitcoin moving away from being labeled as 'digital gold', it remains an effective asset for diversifying portfolios. Gold maintains its position as a reliable store of value. Investors should consider their goals and risk tolerance to achieve balanced diversification.
