Bitcoin Spikes But Gold Surges: What's Driving The Underperformance?

Bitcoin BTC/USD is increasingly being compared to gold as investors examine macroeconomic dynamics and shifting global monetary sentiment.

What Happened: Prominent trader Unipcs on Monday pointed out that gold recently hit a market capitalization of $22.785 trillion, up $7 trillion in just 10 months.

Bitcoin sits at $1.7 trillion, representing just 7.46% of gold's market value and 24% of its recent gains. Bitcoin is “incredibly undervalued” and primed to catch up, according to the trader.

Financial commentator IncomeSharks highlighted that $7 trillion is currently parked in money market funds, with around $14 trillion expected to flow into risk assets like stocks and crypto over the next 10–20 years, largely through wealth transfers.

In an appearance on CNBC on Monday, Tom Lee, Head of Research at Fundstrat, said that institutional selling due to de-leveraging weighed on Bitcoin earlier this year.

However, with that phase now over, Bitcoin is positioned to rise and catch up with gold as a non-dollar asset.

Also Read: How Traders Can Make Money When Bitcoin Trades Sideways: 10x Research

Start Your Crypto Journey Today and Get $500 in Rewards

Exclusively for new Crypto.com App users, unlock up to $500 worth of rewards in the most popular tokens when you start trading.

What's Next: In an X post on Monday, Bitcoin commentator Stack Hodler emphasized the need to stop measuring wealth in U.S. dollars, urging a shift toward Bitcoin, gold and Swiss francs as more accurate barometers of value.

In a follow-up post, he called Bitcoin and gold "hard money" without counter-party risk, dubbing this the “most important thesis of the decade.”

He noted that the global monetary order is shifting, and while gold will benefit from its status and liquidity, Bitcoin will outperform in gains.

Stack Hodler also credited Larry Fink's ETF timing as strategic, stating a major capital wave is on the way.

Read Next: