Gold vs. Bitcoin: Liquidity Tightening Supports Precious Metals Rather Than Cryptocurrency

In 2025, due to global liquidity tightening, increased financial pressure, and capital outflows, investors have flocked to safe-haven assets such as gold, while Bitcoin has come under relative pressure. Spot gold continues to strengthen, currently finding support near $4,000 and is expected to move toward the $4,500 resistance area. In contrast, after reaching an all-time high in October, Bitcoin has pulled back, constrained by tight financing and market leverage pressure, and is now seeking a rebound at the key $80,000 support level.

Macroeconomic factors have created a clear divergence between the two: the overnight financing rate (SOFR) is close to 4.0%, the Treasury General Account (TGA) remains elevated, global liquidity is restricted, and systemic financial stress is on the rise. Investor demand for risk assets has weakened, while demand for safe-haven assets has rebounded, driving up gold prices. At the same time, market volatility and the unwinding of arbitrage trades have intensified short-term pressure on Bitcoin.

Technically, gold has formed a bottom rebound on the weekly chart and remains in an upward channel, which is likely to attract further institutional capital. Although Bitcoin has pulled back, its long-term uptrend since 2023 remains intact, with the $80,000 support level holding firm. A breakout above $105,000 would confirm a new round of upward momentum.

(Source: TradingView)

In summary, liquidity tightening and increased financial pressure in 2025 have created a market environment favorable to precious metals and unfavorable to cryptocurrencies. Gold continues to benefit from its safe-haven qualities and institutional demand, while Bitcoin faces short-term pressure but still maintains potential for long-term upside.