Gold has been one of the strongest performing assets in 2025, increasing by 38% year to date, outpacing Bitcoin’s 23% advance. It’s no secret, however, that Bitcoin has performed significantly better than gold — and pretty much everything else — throughout its brief existence.
A comparison of these two popular inflation-resistant assets relative to a broad measure of the U.S. money supply, known as M2, reveals further insights about their performances.
When adjusted for M2 growth, gold — despite its recent strong performance — remains below its 2011 peak and at roughly the same level as it was in 1975. The all-time high for gold relative to M2 occurred in 1980.
Bitcoin tells a different story. Each bull cycle has seen BTC reach a new high against M2, including last month when Bitcoin achieved both an absolute all-time high and a new relative high against the money supply.
This contrast highlights the differing roles of these two assets. Gold continues to act as a long-standing hedge and stabilizer in investment portfolios, while Bitcoin’s behavior illustrates how new forms of currency can respond differently in an era of rapid monetary expansion.
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