Even modest capital flows from gold to Bitcoin (CRYPTO: BTC) could potentially double Bitcoin’s valuation, according to a Bitwise Asset Management report.
What Happened: Bitwise highlights Bitcoin's growing appeal as a digital alternative to gold, offering speed, borderless transfers, programmability, and easier custody—advantages gold cannot match.
With gold's market cap exceeding $13 trillion and Bitcoin's supply limited, even small reallocations from gold can have outsized effects on BTC's price.
Factors driving this potential shift include Bitcoin's portability and transparency, the growth of Bitcoin ETFs, clearer regulatory frameworks and institutional adoption.
Bitcoin analyst Will Clemente noted that gold has recently been gaining the equivalent of one Bitcoin's market cap per week, emphasizing the magnitude of price movement that could occur if even a fraction rotates into BTC.
Also Read: Here’s Why You Need To Watch Bitcoin If You’re Betting On ETH, XRP
What's Next: Daan Crypto Trades highlighted that Bitcoin has lost over 25% of its value relative to gold in just 12 days, creating one of the sharpest recent divergences.
Gold's rally has pushed its monthly RSI above 92, the highest in 50 years, while Bitcoin has lagged other risk assets despite being dubbed "digital gold."
Historical patterns suggest Bitcoin often rebounds after strong gold rallies or local tops, though past performance is not always consistent.
Analyst IncomeSharks noted gold's 4.5% daily drop, suggesting BTC may now act as a stronger hedge than gold.
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