Is Bitcoin ‘no longer digital gold?’ Bloomberg analyst says NO!

ambcryptoPublished on 2026-02-13Last updated on 2026-02-13

Abstract

Senior Bloomberg analyst Eric Balchunas defends Bitcoin as "digital gold," despite its 6% loss in 2025 compared to gold's 65% gain. He argues that judging Bitcoin's status based on one year of underperformance is absurd, noting it has outperformed gold in 10 of the years since 2012. While recent U.S. spot Bitcoin ETF outflows have weakened BTC's price, the BTC/gold ratio suggests the pullback may be nearing a key support level, similar to the 2022 bear market. Despite short-term weakness, Bitcoin's long-term performance against gold remains strong.

Senior Bloomberg ETF analyst Eric Balchunas has defended Bitcoin as “digital gold,” despite its relative underperformance against physical gold last year.

Responding to Deutsche Bank strategist Marion Laboure’s BTC “no longer digital gold” remarks, Balchunas retorted,

“This is a fine argument to make, but to hinge it on one year’s returns is absurd. Does that mean it was digital gold in 2023 and 2024 when it was up 450%? But now it isn’t because gold did better in 2025. Make it make sense.”

For the unfamiliar, BTC underperformance worsened after the October crash, and fears of a four-year cycle exacerbated the weakness into 2026.

The results? BTC closed 2025 at a 6% loss, while gold posted a massive 65% gain – The highest annual return in over 10 years.

When zoomed out, however, Balchunas’ argument is solid. Since 2012, BTC has only underperformed gold during its bear market cycles. The red years in 2014, 2018, and 2022 saw gold outperform it by 50-70%.

However, over the remaining 10 years, BTC has outperformed gold, posting double to triple-digit gains.

Are ETF outflows dragging BTC?

The ongoing muted demand from U.S Spot BTC ETFs has compounded the asset’s weakness over the past few weeks. The ETF complex demand turned negative last November, with the flows not recovering as of February 2026.

On the contrary, gold ETFs fell to zero in December but saw renewed demand, boosting inflows to $10 billion. Unless BTC ETF flows turn positive and close the gap with gold, the divergence would signal more weakness for the crypto asset.

However, it’s not all gloom for BTC. According to the BTC/gold ratio, a key indicator that tracks the crypto asset’s relative performance to gold, the ongoing pullback might be approaching a key support.

According to the ratio, BTC peaked in late 2024 after hitting 40 ounces of gold. And, the crypto’s bullish structure broke last October after it cracked below the trendline support (white).

At the time of writing, the ratio was at 13 – Down nearly 70% from its peak. This suggested that gold has outperformed BTC by 70% since late 2024.

However, a similar BTC/gold ratio pullback in the 2022 bear market eased near 9, making it a key support to watch out for a potential reversal.

Final Thoughts

  • Despite lagging behind gold in 2025, Bitcoin has dominated annual investor returns ten times since 2012.
  • Weak ETF inflows have further accelerated Bitcoin’s decoupling from gold.

Related Questions

QAccording to Bloomberg analyst Eric Balchunas, why is it 'absurd' to claim Bitcoin is no longer digital gold based on one year's returns?

ABecause Bitcoin has significantly outperformed gold in 10 out of the years since 2012, and judging its entire status on a single year of underperformance ignores its long-term performance history.

QWhat was the annual performance difference between Bitcoin and gold in 2025?

ABitcoin closed 2025 at a 6% loss, while gold posted a massive 65% gain.

QWhat key factor, besides price performance, is contributing to Bitcoin's recent weakness according to the article?

AMuted and negative demand from U.S. Spot Bitcoin ETFs, with outflows that began in November and had not recovered as of February 2026.

QWhat does the BTC/gold ratio measure, and what was its value at the time of writing?

AThe BTC/gold ratio is a key indicator that tracks Bitcoin's relative performance to gold. At the time of writing, the ratio was at 13, meaning it took 13 ounces of gold to buy one Bitcoin, indicating gold had outperformed BTC by nearly 70% since late 2024.

QBased on historical data from the 2022 bear market, what level is a key support for the BTC/gold ratio that could signal a potential reversal?

AA ratio of 9 is a key support level, as a similar pullback in the 2022 bear market eased near that point.

Related Reads

The Gold Buy-on-the-Dip Guide: Watch Interest Rates, Not Just War

"Gold Buying Guide: Focus on Interest Rates, Not Just War" Four months ago, gold buyers likely didn't anticipate buying at a peak that even a war couldn't sustain. After hitting a record high of $5,596 on January 29, gold entered a bear market just 91 days later, its fastest decline since 2008. A key trigger was the Fed's hawkish shift, highlighting that monetary policy, not geopolitics, is the primary driver. The article argues that the traditional "buy gold in turmoil" script has changed. While the US-Iran conflict initially boosted prices, the sustained rally in oil prices heightened inflation fears, forcing central banks to maintain or consider tighter policy. Since gold yields no interest, higher rates increase its opportunity cost, eroding its appeal. This dynamic was evident when gold fell sharply on May 18 despite positive peace talks, as lower oil prices eased inflation and thus rate hike pressures. The recent sell-off is also part of a broader market deleveraging. Correlations between gold, Nasdaq, and Bitcoin spiked as leveraged investors sold liquid assets to cover losses, creating a synchronized downturn. Historically, gold bottoms align with policy shifts, not conflict resolutions. The 2008 and 2022 bear markets ended with shifts to extreme easing and peak inflation expectations, respectively. For potential buyers, the author suggests monitoring three signals: 1) Peak interest rate hike expectations, 2) Reopening of the Strait of Hormuz (to ease oil/inflation pressure), and 3) A return to net inflows for Gold ETFs, indicating the end of forced selling. While predicting the exact bottom is impossible, the author's personal strategy involves scaling into a position across price levels like $4000, $3700, and $3500, committing no more than 30% of the intended total allocation initially, and adding the remainder only if key signals emerge. The core conclusion: In turbulent times, watching interest rates is more crucial than watching wars.

marsbit8m ago

The Gold Buy-on-the-Dip Guide: Watch Interest Rates, Not Just War

marsbit8m ago

Recent On-Chain Review: No Clear Narrative Under U.S. Stock Market Pressure, Just Hype

This article analyzes the current state of the Solana meme coin and community token ecosystem, highlighting a market caught between two dominant forces: attention-based PvP and a gradual return to community-centric projects. The first part explores the "Attention PvP" dynamic, where success is driven by celebrity endorsements, viral events, and speed. Examples include $JOTCHUA, which surged after its meme creator's social media activity, and $WORLDCUP, which outperformed a similar Base chain project ($PITCH) largely due to influencer support. The recent "pump.fun GO" feature, allowing bounty tasks for token promotion, is critiqued for fostering sensationalist and often negative stunts—like people getting token tickers tattooed on their bodies for rewards—reminiscent of old internet shock content. In contrast, the article points to a resurgence of organic, community-driven tokens that survive market volatility through strong holder bases and shared ideology, not just hype. Influencer Ansem is cited, arguing that durable meme coins rely on communities willing to endure losses and promote their core message daily. Examples given are older tokens like $neet (anti-work ethos), $troll, $buttcoin, and $triplet, which have maintained relative price stability. A prime example of this community-build model is the new project $KINS, the token for the browser-based MMORPG Kintara. Its success stems not from advanced graphics but from consistently delivering updates, fostering player trust, and creating genuine engagement (e.g., in-game economies, events, property auctions). It has attracted a growing player base and even notable KOLs as participants, demonstrating that sustainable growth can come from building trust rather than orchestrating pumps. The article concludes by questioning whether the market is ultimately a game of mutual trust or mutual deception, expressing hope that such reflection might lead to a healthier ecosystem.

marsbit8m ago

Recent On-Chain Review: No Clear Narrative Under U.S. Stock Market Pressure, Just Hype

marsbit8m ago

Teen Accused Of $13M Crypto Scam That Funded Miami Luxury

A Canadian teenager, Trenton Richard David Johnston, is accused of running a cryptocurrency fraud scheme from the Miami area, allegedly causing over $13 million in losses. The 19-year-old and unnamed co-conspirators are charged with posing as support representatives from a major search engine and crypto companies to gain access to victims' digital accounts and crypto wallets. He was indicted on charges of conspiracy to commit wire fraud and money laundering. Prosecutors allege that Johnston, along with co-defendant Brandon Michael Tardibone, laundered more than $1 million of the illicit funds to finance luxury vehicles, high-end jewelry, and an extravagant nightlife. Tardibone is additionally charged with harboring Johnston, who had overstayed his visa. Both defendants face up to 20 years in prison if convicted. The case is being prosecuted by the U.S. Attorney's Office for the Southern District of Florida.

bitcoinist13m ago

Teen Accused Of $13M Crypto Scam That Funded Miami Luxury

bitcoinist13m ago

On-Chain Scene on Opening Day: $20 Billion Already Staked, How Do On-Chain Contracts Know Who Wins?

On the opening day of the 2026 World Cup, over $2 billion had already been wagered on just the "tournament winner" contracts on platforms like Polymarket and Kalshi. This article explores how these blockchain-based prediction markets actually function once the games begin. It breaks down the massive volume and explains how single-game and tournament-long contracts are priced, with values moving between 1-99 cents to reflect implied probabilities. A key mechanism highlighted is "elimination zeroing," where a team's "champion yes" contract immediately settles to zero once they are mathematically eliminated. The core technical question answered is: how does a smart contract "know" who won a real-world match? The answer lies in oracles. The article details two primary paradigms: UMA's "optimistic oracle" (used by most of Polymarket), which allows a challenge period after a proposed result, and Chainlink's multi-source data aggregation (used by FIFA partners like ADI Predictstreet), which automates settlement with minimal dispute windows. Finally, the article injects a note of caution, citing research estimating that a significant portion of historical trading volume on these platforms might be "wash trading" to inflate numbers. It concludes by contrasting the legal status of these "event contracts" under CFTC rules in the U.S. versus traditional, state-regulated sports betting. As the tournament progresses, the real-time operation of this multi-billion dollar machine—its settlements, eliminations, and underlying mechanisms—becomes a story as compelling as the football itself.

marsbit23m ago

On-Chain Scene on Opening Day: $20 Billion Already Staked, How Do On-Chain Contracts Know Who Wins?

marsbit23m ago

Sequoia Dialogue with Jensen Huang: Computing Model Undergoes a 60-Year Transformation; You Won't Be Replaced by AI, But You Will Be Dimensionality-Reduced by 'Those Who Master AI'

NVIDIA founder and CEO Jensen Huang, in a conversation with Sequoia Capital's Konstantine Buhler, argues that we are witnessing the most significant computing shift in 60 years—from retrieval-based to generative computing. Instead of just storing and retrieving data, future systems will generate highly personalized content (text, images, video) on demand, powered by massive "AI factories." Huang envisions a global "intelligence network" that will envelop the planet, following the historical patterns of energy and communication grids. He outlines a five-layer investment framework: 1) Energy, 2) Chips/Computers, 3) Infrastructure (data centers), 4) AI Models, and 5) Applications. He predicts this ecosystem will reach a scale of $20 trillion annually. Crucially, Huang pushes back against fears of AI-driven job loss. He distinguishes between specific "tasks" (e.g., typing, analyzing images) and overall "jobs" (e.g., CEO, radiologist). While AI automates tasks, it increases efficiency and demand for the higher-value problem-solving aspects of professions, thus creating more jobs and "up-leveling" careers. The real risk, he asserts, is not being replaced by AI, but being outperformed by someone who effectively leverages it. He urges everyone to embrace AI as a tool for augmented capability and innovation.

marsbit1h ago

Sequoia Dialogue with Jensen Huang: Computing Model Undergoes a 60-Year Transformation; You Won't Be Replaced by AI, But You Will Be Dimensionality-Reduced by 'Those Who Master AI'

marsbit1h ago

Trading

Spot
Futures

Hot Articles

What is $BITCOIN

DIGITAL GOLD ($BITCOIN): A Comprehensive Analysis Introduction to DIGITAL GOLD ($BITCOIN) DIGITAL GOLD ($BITCOIN) is a blockchain-based project operating on the Solana network, which aims to combine the characteristics of traditional precious metals with the innovation of decentralized technologies. While it shares a name with Bitcoin, often referred to as “digital gold” due to its perception as a store of value, DIGITAL GOLD is a separate token designed to create a unique ecosystem within the Web3 landscape. Its goal is to position itself as a viable alternative digital asset, although specifics regarding its applications and functionalities are still developing. What is DIGITAL GOLD ($BITCOIN)? DIGITAL GOLD ($BITCOIN) is a cryptocurrency token explicitly designed for use on the Solana blockchain. In contrast to Bitcoin, which provides a widely recognized value storage role, this token appears to focus on broader applications and characteristics. Notable aspects include: Blockchain Infrastructure: The token is built on the Solana blockchain, known for its capacity to handle high-speed and low-cost transactions. Supply Dynamics: DIGITAL GOLD has a maximum supply capped at 100 quadrillion tokens (100P $BITCOIN), although details regarding its circulating supply are currently undisclosed. Utility: While precise functionalities are not explicitly outlined, there are indications that the token could be utilized for various applications, potentially involving decentralized applications (dApps) or asset tokenization strategies. Who is the Creator of DIGITAL GOLD ($BITCOIN)? At present, the identity of the creators and development team behind DIGITAL GOLD ($BITCOIN) remains unknown. This situation is typical among many innovative projects within the blockchain space, particularly those aligning with decentralized finance and meme coin phenomena. While such anonymity may foster a community-driven culture, it intensifies concerns about governance and accountability. Who are the Investors of DIGITAL GOLD ($BITCOIN)? The available information indicates that DIGITAL GOLD ($BITCOIN) does not have any known institutional backers or prominent venture capital investments. The project seems to operate on a peer-to-peer model focused on community support and adoption rather than traditional funding routes. Its activity and liquidity are primarily situated on decentralized exchanges (DEXs), such as PumpSwap, rather than established centralized trading platforms, further highlighting its grassroots approach. How DIGITAL GOLD ($BITCOIN) Works The operational mechanics of DIGITAL GOLD ($BITCOIN) can be elaborated on based on its blockchain design and network attributes: Consensus Mechanism: By leveraging Solana’s unique proof-of-history (PoH) combined with a proof-of-stake (PoS) model, the project ensures efficient transaction validation contributing to the network's high performance. Tokenomics: While specific deflationary mechanisms have not been extensively detailed, the vast maximum token supply implies that it may cater to microtransactions or niche use cases that are still to be defined. Interoperability: There exists the potential for integration with Solana’s broader ecosystem, including various decentralized finance (DeFi) platforms. However, the details regarding specific integrations remain unspecified. Timeline of Key Events Here is a timeline that highlights significant milestones concerning DIGITAL GOLD ($BITCOIN): 2023: The initial deployment of the token occurs on the Solana blockchain, marked by its contract address. 2024: DIGITAL GOLD gains visibility as it becomes available for trading on decentralized exchanges like PumpSwap, allowing users to trade it against SOL. 2025: The project witnesses sporadic trading activity and potential interest in community-led engagements, although no noteworthy partnerships or technical advancements have been documented as of yet. Critical Analysis Strengths Scalability: The underlying Solana infrastructure supports high transaction volumes, which could enhance the utility of $BITCOIN in various transaction scenarios. Accessibility: The potential low trading price per token could attract retail investors, facilitating wider participation due to fractional ownership opportunities. Risks Lack of Transparency: The absence of publicly known backers, developers, or an audit process may yield skepticism regarding the project's sustainability and trustworthiness. Market Volatility: The trading activity is heavily reliant on speculative behavior, which can result in significant price volatility and uncertainty for investors. Conclusion DIGITAL GOLD ($BITCOIN) emerges as an intriguing yet ambiguous project within the rapidly evolving Solana ecosystem. While it attempts to leverage the “digital gold” narrative, its departure from Bitcoin's established role as a store of value underscores the need for a clearer differentiation of its intended utility and governance structure. Future acceptance and adoption will likely depend on addressing the current opacity and defining its operational and economic strategies more explicitly. Note: This report encompasses synthesised information available as of October 2023, and developments may have transpired beyond the research period.

363 Total ViewsPublished 2025.05.13Updated 2025.05.13

What is $BITCOIN

Discussions

Welcome to the HTX Community. Here, you can stay informed about the latest platform developments and gain access to professional market insights. Users' opinions on the price of BTC (BTC) are presented below.

活动图片

Top Questions