Is Bitcoin Store of Value vs Gold Still a Debate?

For more than a decade, Bitcoin has carried a mythic label—“digital gold.” It’s a phrase that excites crypto believers, sparks fierce debate among traditional investors, and has shaped an entire narrative about the future of decentralized assets. But after Bitcoin’s latest dramatic plunge—one that wiped out all its year-to-date gains and rattled even seasoned traders—the world is asking a new, more pressing question: Is Bitcoin still worthy of being called digital gold? The digital asset’s slide from its record high has not only shaken confidence but has also cast fresh doubts on those sky-high price targets projected for 2026. While price predictions grab headlines, many analysts argue that another issue is just as important—if not more so: What role should Bitcoin truly play in an investment portfolio? And crucially… When will it finally start behaving like a genuine long-term store of value? These questions—buzzing across Wall Street desks, financial newsrooms, and crypto forums—are reshaping how the world evaluates Bitcoin’s maturity. And according to experts, the cryptocurrency still has a lot to prove.

Is It a Store of Value or a Risk Asset?

Nate Geraci, President of NovaDius Wealth Management, brought fresh insight to this debate during his appearance on CNBC’s “ETF Edge” podcast. His message was firm yet hopeful: Bitcoin could become a reliable digital store of value—but it’s not there yet. Despite years of being promoted as digital gold, Geraci believes the asset’s behavior still contradicts that promise. Traditional gold is famous for being a safe haven—an asset that stands strong when markets crumble. But Bitcoin? More often than not, it seems to move with risky assets, not against them. This pattern, more than anything else, is what weakens Bitcoin’s claim as digital gold.

When Crypto Should Shine—But Doesn’t

The key issue undermining the digital-gold narrative is correlation. Gold typically has a low or negative correlation with stock markets, making it a go-to shelter during market turbulence. Bitcoin, however, frequently acts like a classic risk-on asset—the kind that sinks when stocks do and rallies during bullish market sentiment. Even with widespread adoption, known institutional inflows, and stronger regulatory clarity, Bitcoin hasn’t consistently displayed the behavior investors expect from a safe haven. After two major volatility shocks in 2025, more analysts than ever began to publicly question Bitcoin’s ability to function as a value-preserving asset. Some even argue that its recent performance shows it behaves more like a high-growth tech stock rather than a digital counterpart to gold. Geraci echoed this sentiment, describing Bitcoin’s overall record as “mixed.” Sometimes it decouples from equities in ways that excite investors. Other times it plunges right alongside them—or worse.

A Rare Moment When Bitcoin Looked Like Gold

One standout exception Geraci highlighted was Bitcoin’s performance during the so-called “tariff tantrum.” In April, global markets were roiled after President Donald Trump announced sweeping new tariffs. Stocks stumbled, risk appetite evaporated, and investors scrambled for safe assets. This was a pivotal moment—and surprisingly, Bitcoin shined. During this event, Bitcoin broke away from stock market trends and surged, acting more like the protective asset so many hope it will eventually become. This decoupling caught the attention of both retail investors and institutional strategists. It was one of the few times Bitcoin strengthened during a risk-off wave—a glimpse of its potential to eventually play the role people envision. But… it didn’t last.

Tech Weakness Strikes—and Crypto Crumbles Harder

More recently, a wave of weakness across the tech sector dragged the wider market lower. Yet even as stocks fell, Bitcoin fell harder—once again highlighting its vulnerability to risk-off events. Most major cryptocurrencies tumbled with the downturn, and Bitcoin’s drop was even steeper than the losses seen in equities. That pattern sent a clear message: Bitcoin is still not behaving like digital gold. Geraci emphasized that the question remains unresolved and will require a much larger dataset—and more years of behavioral patterns—to fully understand Bitcoin’s true market identity.

Could Bitcoin Still Evolve Into Digital Gold?

Despite the short-term setbacks, Geraci remains optimistic about the long-term trajectory. He believes that with more time, regulatory development, and increasing adoption, Bitcoin will gradually start acting more like a stable store of value. However, he stressed that the asset is still in its adolescence. “Bitcoin is like a 15- or 16-year-old asset,” he explained—young, unpredictable, and still undergoing rapid transformation. Gold, by contrast, has a solid 5,000-year legacy of reliability, trust, and historical performance behind it. In an email to CNBC, Geraci added that Bitcoin’s story is still in its early chapters—and those writing the future of crypto need to remain patient.

Short-Term Pain vs. Long-Term Perspective

It’s easy to get caught up in the chaos of volatile swings, especially after Bitcoin suffered a drop of more than 25% from its October all-time high. At one point, the peak-to-trough decline reached nearly 35%, a staggering move even for seasoned crypto traders. But Geraci urges investors to keep perspective. Despite the recent pain, Bitcoin’s price has still more than doubled since January 2024, thanks largely to the successful rollout of SEC-approved spot Bitcoin ETFs. These ETFs—after years of anticipation—drew massive inflows from both institutional and retail investors, contributing to Bitcoin’s explosive early-year gains. Yet even these ETFs weren’t immune to the latest downturn.

ETF Outflows Surge—But the Bigger Picture Still Encourages Bulls

Over the past month, spot Bitcoin ETFs saw billions in outflows as traders rushed to de-risk their portfolios. But even after these exits, the ETFs still hold roughly $22 billion in net inflows since the start of the year. This means that, big picture, money is still flowing into Bitcoin, not out of it. Geraci believes that the harsh sell-off was less about Bitcoin itself and more about broader market stress—especially the slump in tech stocks and a risk-off shift across global markets. But another factor amplified the damage: Excessive leverage in the crypto market. When traders borrow too aggressively to increase their positions, any market downturn becomes far more painful. Leverage unwinds can trigger cascades of forced selling—and that’s exactly what analysts observed in the recent decline. Geraci said the crypto ecosystem had accumulated far too much leverage, and the pullback was a necessary and healthy “clearing out” event.

Crypto Index ETFs

While some investors want exposure to crypto but fear the volatility of Bitcoin alone, Geraci recommends an alternative: crypto index ETFs. These funds spread exposure across multiple digital assets instead of concentrating everything in a single token. This diversification reduces the impact of any one coin’s behavior and helps investors capture broader market momentum. For those who want to participate in the crypto sector without placing all their bets on a single volatile asset, index ETFs may offer a more balanced approach. Still, Geraci made one point especially clear: Bitcoin remains the flagship of the crypto universe.

Bitcoin vs. the Rest of the Crypto Market

According to Geraci, most other cryptocurrencies will continue to behave like high-growth tech stocks, not like stores of value. Their price action remains closely tied to innovation trends, investor sentiment, and the general appetite for risk. In contrast, Bitcoin—thanks to its unique position, limited supply, and global recognition—has a far higher likelihood of maturing into digital gold over time. Other tokens, he argued, fall more naturally into categories such as:

• Risk assets
• Speculative growth plays
• Tech-like instruments
• Utility-driven tokens tied to specific ecosystems

Their investment story revolves around themes like:

• Stablecoins
• Tokenization
• Decentralized finance (DeFi)
• Blockchain-based payments
• Smart contract innovation

Meanwhile, Bitcoin’s investment thesis is simpler—and far more comparable to that of gold: Scarcity. Longevity. Trust. But Bitcoin must still earn that trust.

Bitcoin’s recent plunge has reignited a global debate about what the world’s largest cryptocurrency truly represents. While many still embrace the powerful narrative of digital gold, analysts like Nate Geraci argue that Bitcoin remains a maturing, evolving asset—not yet the stable store of value its supporters envision. Still, the long-term outlook holds promise. With growing institutional adoption, robust ETF inflows, and a steadily expanding investor base, Bitcoin has every opportunity to strengthen its position as an inflation hedge and macro-safe haven. But it must first demonstrate consistent behavior, reduced volatility, and a stronger track record during market stress. For now, Bitcoin stands at a crossroads—bold, influential, and full of potential, yet still proving itself in the global financial arena. Whether it ultimately earns the title of digital gold will depend on how it performs in the years ahead and how investors continue to shape its evolving narrative.

Disclaimer: CryptopianNews shares this for learning and info only. It’s not meant to be financial or investment advice. Crypto markets change a lot and move quickly. Investing in them can be risky. You should always look into things yourself. Talk to a trained financial advisor before making any choices about investing.