Bitaigen Research Bitcoin is currently hovering around $65,000, and several analysts have pointed out that it no longer fulfills its “digital gold” function. Recognition of its value‑store attributes is waning in the market.
In this article we review Bitcoin’s recent market performance, focusing on whether it still possesses “digital gold” characteristics, and we bring in insights from multiple industry analysts. By comparing gold’s price trajectory and institutional fund flows, we aim to help readers clarify the shifting role of Bitcoin and the associated risks. Subsequent sections will dive deeper, so a careful read is recommended.
Market Overview
According to Yahoo Finance, Bitcoin fluctuated near the $65,000 mark on Thursday, the 12th of this month. At the same time, gold has risen roughly 16 % since the start of the year, continuing a record‑setting rally that began in 2025. By contrast, Bitcoin has posted four consecutive months of decline since January, with a cumulative year‑to‑date drop of about 22 %.
Analyst Opinions
- Fundstrat Digital Assets Head Sean Farrell said that many market participants are disappointed by the decoupling of Bitcoin from gold’s price movements.
- He believes the “store of value” argument for Bitcoin remains persuasive in the long run, but currently the asset behaves more like a high‑beta growth investment.
- Farrell notes that Bitcoin is only about 17 years old, whereas gold has a history spanning several millennia. Gold’s performance is closely linked to global trade capital flows, a multipolar geopolitical environment, and central banks—buyers that are largely insulated from price volatility.
- Deutsche Bank research analyst Marion Laboure wrote in her latest report that the divergence between Bitcoin and gold performance indicates Bitcoin has ceased to act as “digital gold.”
- Since Bitcoin turned bearish in October 2025, institutional‑focused ETFs have witnessed outflows amounting to tens of billions of dollars.
- She interprets this sustained selling pressure as a sign that traditional investor interest is fading, and that overall sentiment toward crypto assets is becoming increasingly bearish.
Institutional Activity
- Institutional‑grade ETF outflows have reached the tens‑of‑billions‑dollar level.
- Institutional investors appear inclined to sell on short‑term rallies rather than buy on dips.
Ethereum Situation
- Ethereum also lingered below $2,000 on Thursday, registering a year‑to‑date decline of roughly 30 %.
- Standard Chartered analyst Geoff Kendrick lowered Ethereum’s year‑end target from $7,500 to $4,000, and cut Bitcoin’s target from $150,000 to $100,000.
- He projects that Bitcoin may first slip beneath $50,000 before any meaningful rebound becomes possible.
Outlook
- The market broadly expects that, prior to Kevin Warsh potentially assuming the Federal Reserve chairmanship in June, central banks will not pursue further rate cuts.
- Within this macro backdrop, ETF holders are more likely to take profits when prices recover.
The above provides a detailed analysis of Bitcoin hovering around $65,000 and the view among analysts that its “digital gold” role has diminished. For more market commentary, please follow other articles from Bitaigen.
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