Here’s how Bitcoin supporters are reacting to price stagnation during a worldwide rally.

Bitcoin Bulls Defend the Asset as Gold and Equities Surge

Bitcoin (BTC $87,780.36) is struggling to live up to its traditional narratives, including acting as an inflation hedge or a safe haven amid global uncertainty. While gold has climbed over 80% amid high inflation, geopolitical tension, and interest rate uncertainty, Bitcoin has dropped 14% year over year.

This performance gap raises the question: why invest in Bitcoin when precious metals and equities are delivering stronger returns? Longtime Bitcoin advocates offer several explanations.

Comfort in the Known
Jessy Gilger, senior advisor at Gannett Wealth Advisors, sees gold’s rally as investor “muscle memory.” “Institutions retreat to what they know during periods of fear,” Gilger said. “Bitcoin has been technically steady for more than 15 years. Over time, the market will recognize that digital scarcity is more efficient than physical gold, and Bitcoin should catch up.”

Supply Dynamics
Mark Connors, CIO at Risk Dimensions, emphasizes that Bitcoin’s current weakness reflects supply distribution, not demand failure. “Institutional ETF inflows are absorbing a decade’s worth of early-adopter supply,” he explained. “This is a transfer of ownership, not a lack of interest.”

A Tech Stock Pattern
Charlie Morris, CIO at ByteTree, notes Bitcoin’s correlation with tech stocks. “Gold serves the real world; Bitcoin serves the digital world. Its recent struggles mirror tech stock behavior rather than a failure of the asset.”

Delayed Rotation
Peter Lane, CEO of Jacobi Asset Management, highlights investor familiarity with precious metals. “Gold and silver benefit from mass-market trust. Bitcoin hasn’t earned that yet, but we could see a delayed rotation into BTC as confidence grows.”

Shifting Demand
Anthony Pompliano, CEO of ProCap Financial, sees changing macro conditions. “Bitcoin has acted as an inflation hedge in recent years, but with deflation likely, it will need new demand drivers. I remain optimistic about its long-term prospects.”

A Long-Term Solution
David Parkinson, CEO of Musquet, frames Bitcoin as more than a hedge. “With a fixed supply and growing network, Bitcoin is becoming the Internet’s native monetary asset—a permanent solution to inflation rather than a temporary one.”

Relative Opportunity
Andre Dragosch of Bitwise points to underpricing versus gold. “Precious metals benefit from familiarity in uncertain times, but Bitcoin’s current relative value suggests upside potential as capital rotates into undervalued assets.”

Despite recent underperformance, bulls argue that Bitcoin’s supply structure, market psychology, and long-term fundamentals point toward eventual recovery and significant upside.