Thomas Perfumo, Global Economist at Kraken, has stated that Bitcoin is set to become a more widely recognized and superior store of value compared to traditional physical commodities like gold. This prediction comes amid recent fluctuations in the price of both gold and Bitcoin, which have highlighted their differing responses to global economic events.
Gold’s Recent Performance
Gold reached new all-time highs in early 2025, despite a turbulent period in the latter half of 2024. Following Donald Trump’s electoral victory, gold’s price experienced a notable dip. From over $2,780 per ounce at the end of October 2024, it fell to $2,550 by mid-November. However, as Trump’s inauguration approached in January 2025, gold’s price began to climb again, reaching $2,700 on inauguration day.
This marked the beginning of a small bull run, eventually pushing gold’s price above $2,900 for the first time in history. By February 2025, gold reached an all-time high of over $2,940, reflecting a 7% increase in just two weeks. While this surge is rare for gold, particularly in the absence of market panic, the price later retreated, dropping below $2,900.
The rise in gold’s value is often linked to global geopolitical uncertainties, but Perfumo points out that there are emerging supply constraints in the physical gold market, including delivery delays and inefficiencies in logistics.
Bitcoin’s Market Movements
In contrast, Bitcoin’s price has experienced a period of lateralization since the end of November 2024. While gold’s price was declining after Trump’s victory, Bitcoin was rising. However, once gold’s price stabilized, Bitcoin’s upward momentum also slowed. Despite fluctuations between $90,000 and $109,000, Bitcoin has settled around the $96,000 mark in recent weeks, though it has failed to remain above the $100,000 threshold.
Perfumo notes that while Bitcoin’s price trajectory differs from gold’s, these fluctuations are typical of the cryptocurrency’s behavior. Bitcoin’s price is inherently volatile, often swinging in small increments, but these movements have not been enough to replicate the performance of gold in recent months.
Bitcoin’s Growing Institutional Recognition
Despite its price stagnation, Bitcoin continues to attract growing institutional interest. Perfumo highlights the increasing flow of investments into Bitcoin Exchange-Traded Funds (ETFs) and the rising discussions among regulators about Bitcoin’s role as a store of value. These developments indicate a shift toward wider recognition of Bitcoin alongside traditional safe-haven assets like gold.
Perfumo further contrasts Bitcoin with gold by emphasizing its superior characteristics. Unlike gold, which faces logistical hurdles, Bitcoin offers advantages such as its ability to be arbitrarily divided down to the satoshi (one hundred millionth of a BTC), and its ability to be transferred globally in real time, 24/7, with confirmations averaging just a few minutes.
Conclusion
Perfumo concludes that while Bitcoin’s price may not yet mirror gold’s performance, its unique advantages position it as a more efficient and accessible alternative for storing value. Over time, as Bitcoin gains further institutional recognition and overcomes the challenges facing physical gold, it is likely to be seen as the superior store of value.
For investors looking to diversify their portfolios with alternative assets, Bitcoin presents a compelling opportunity, with Kraken’s Global Economist suggesting that its growth will only continue as its role in modern financial markets becomes more firmly established.
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