Bitcoin’s image as ‘digital gold’ is facing renewed scrutiny in 2025, as its performance under market pressure calls into question its designation as a reliable store of value. Following a strong start to the year highlighted by heightened institutional interest, Bitcoin’s current volatility raises significant doubts about its capability to serve as a safe-haven asset. ETF expert Nate Geraci emphasizes that while Bitcoin possesses long-term potential, it still must justify its worth amid periods of market instability.
Bitcoin’s Store of Value Status Remains Uncertain
In 2025, the narrative surrounding Bitcoin as ‘digital gold’ is being rigorously tested. Traditionally, Bitcoin has been compared to gold for its supposed ability as a store of value, yet it has not consistently demonstrated this role—particularly during significant market sell-offs.
Nate Geraci, president of NovaDius Wealth Management, points out that while Bitcoin may ultimately prove itself as a store of value, its current instability leaves uncertainty. Despite Bitcoin’s promising long-term outlook, it has yet to exhibit the consistent price behavior associated with stable assets like gold.
This year’s price performance further complicates Bitcoin’s narrative. After experiencing notable growth in early 2024—fueled by an influx of spot Bitcoin ETFs—the cryptocurrency has undergone a decline of more than 25% from its peak in October 2025. This downturn raises crucial questions about Bitcoin’s viability as a safe haven during turbulent times.
Bitcoin’s Mixed Performance During Market Selloffs
Bitcoin’s price fluctuations have been turbulent during key episodes of market volatility. Geraci notes that while Bitcoin rallied during the “tariff tantrum” in April 2025—following a series of tariff announcements from President Trump—its recent performance during selloffs in the technology sector indicates that it has underperformed, declining more sharply than traditional equities. This erratic behavior has led to skepticism regarding Bitcoin’s ability to serve as a consistent safe-haven asset.
Despite this volatility, Geraci remains optimistic about Bitcoin’s long-term prospects. He suggests that Bitcoin’s relatively short history—only 15 years—means it has not fully matured to the level of stability seen in traditional safe-haven assets like gold. Geraci states, “It is only 15 or 16 years old, so still has to prove itself as that digital store of value.”
While gold boasts thousands of years of reputation as a store of value, Bitcoin’s track record is still in the early stages of development, creating both opportunities for future growth and significant uncertainties for investors.
Investor Sentiment and Bitcoin’s Market Flows
As the debate over Bitcoin’s role as digital gold continues, shifts in investor sentiment are noteworthy. Geraci reports that Bitcoin ETFs saw substantial inflows, particularly following the SEC’s approval of spot Bitcoin ETFs in 2024, signaling that institutional investors are betting on Bitcoin’s potential for long-term stability. Yet, recent outflows from Bitcoin ETFs indicate a possible decline in investor confidence, exacerbated by Bitcoin’s recent price declines.
The evolution of Bitcoin’s role within the broader cryptocurrency market is also evident. Geraci points to the rising interest in crypto index ETFs—which invest in a diversified array of digital assets—as indicative of a changing investment landscape. Nevertheless, Bitcoin remains a distinct asset class, with many investors holding out hope that it will eventually mirror the stability and reliability associated with gold.
The Future of Bitcoin as Digital Gold
Looking to the future, Geraci expresses cautious optimism regarding Bitcoin’s trajectory while warning that it is premature to draw definitive conclusions. While Bitcoin has demonstrated significant growth since early 2024, its inconsistent performance during times of market distress remains a pressing concern for potential investors. As Geraci aptly summarizes, “The jury is still out,” reinforcing the importance of allowing time for Bitcoin to establish itself as a non-correlated asset akin to gold.
As Bitcoin continues its evolution, its role in investment strategies is likely to fluctuate. Geraci suggests that while Bitcoin may become less volatile as it matures, this will require patience and further evidence of its stability. Until then, investors should maintain a cautious stance, recognizing that Bitcoin’s journey as an established store of value is still in its formative years.
