- Bitcoin has outpaced gold and oil with nearly tenfold returns, attracting younger investors and changing investment preferences.
- Bitcoin’s dominance peaked in 2021, with gold and oil values in BTC terms falling by January 2025.
- Bitcoin’s price volatility and weak correlation with traditional assets showcase its distinct role in the evolving investment landscape.
Crypto researcher Axel Adler Jr. emphasizes on X post how Bitcoin is becoming more well-liked as a virtual store of value. Its capped supply, ease of fractional purchase, and increasing adoption have attracted younger investors. This marks a shift from traditional preferences for assets like gold or oil.
Besides its fundamental appeal, Bitcoin has benefitted from broader industry support, including policies like the Trump administration’s “Crypto Capital” agenda. However, the cryptocurrency’s future trajectory rests on the stability of risk asset markets under continuous macroeconomic and political volatility.
Bitcoin’s Dominance Over Gold and Oil
While gold made consecutive gains that peaked in 2020, crude oil suffered a severe blow amid the pandemic crash in 2020, and Bitcoin surged between 2018 and 2021, breaking through $60,000 at the beginning of 2021 before repressively plunging below $30,000 at mid-year.
When a barrel of crude oil was worth 0.008 BTC and an ounce of gold was worth 0.294 BTC, Bitcoin’s supremacy over commodities peaked in late 2021. These trends showcased Bitcoin’s rapid valuation gains against traditional resources.
Shifting Trends Post-2021
Bitcoin had a tough time after 2021, with declines followed by a recovery phase in late 2024. In January 2025, Bitcoin’s price was around $40,000. The BTC valuation of gold and oil thus plummeted.
This was 0.294 BTC in 2021, one ounce of gold; it now costs just 0.026 BTC. In similar fashion, crude oil fell from 0.008 BTC per barrel to 0.0007 BTC by 2025. These changes give a good representation of the shrinking purchasing power of Bitcoin against these commodities.
Weak Correlation with Commodities
Bitcoin’s weak correlation with traditional commodities underscores its distinct price behavior. While gold and crude oil exhibited consistent trends in USD, Bitcoin remained volatile. Moreover, gold and oil prices in BTC terms became significantly cheaper, highlighting Bitcoin’s unique dynamics.
