In 2025, gold has emerged as one of the top-performing assets with a remarkable 38% year-to-date surge, outperforming bitcoin's 23% gain. However, historical data reveals that bitcoin (BTC) has significantly outperformed gold and virtually all other assets throughout its existence.
Comparing these two popular inflation-resistant assets against the broad US money supply measure (M2) provides deeper insights into their performance dynamics.
When adjusted for M2 growth, gold - despite its recent strong performance - remains below its 2011 peak and trades at levels similar to 1975. Gold's all-time high against M2 occurred back in 1980.
Bitcoin presents a completely different narrative. Each bull market cycle has seen BTC achieve new records against M2, including last month when bitcoin reached both absolute all-time highs and new peaks relative to money supply.
This fundamental contrast underscores their distinct market roles. Gold maintains its position as a long-term portfolio hedge and stabilizer, while bitcoin's performance demonstrates how innovative digital assets respond uniquely to periods of rapid monetary expansion.