TLDR
- Bitcoin’s role as a store of value remains uncertain amid recent volatility.
- Geraci notes Bitcoin’s performance during market sell-offs does not confirm its safe-haven status.
- Despite Bitcoin’s growth in 2024, it failed to act like a store of value during recent downturns.
- ETF expert Nate Geraci believes Bitcoin will mature but still lacks consistent stability.
Bitcoin’s reputation as “digital gold” is facing scrutiny in 2025 as its performance remains inconsistent during market turbulence. Despite a strong start to the year with increasing institutional interest, Bitcoin’s recent volatility has raised doubts about its ability to serve as a reliable store of value. ETF expert Nate Geraci highlights that while Bitcoin shows long-term potential, it still needs to prove its worth amid market stress.
Bitcoin’s Store of Value Status Remains Uncertain
In 2025, Bitcoin’s narrative as “digital gold” is being put to the test as it continues to show volatility. The cryptocurrency, often compared to gold for its potential as a store of value, has not consistently proven this role, especially in periods of broader market sell-offs.
According to Nate Geraci, president of NovaDius Wealth Management, while Bitcoin might eventually prove itself as a store of value, the jury is still out. Geraci emphasized that despite Bitcoin’s long-term potential, it has yet to show consistent behavior that would align it with the stability of gold.
Bitcoin’s price performance this year underscores the mixed track record of its digital gold comparison. While it experienced significant growth in early 2024, driven in part by an influx of spot Bitcoin ETFs, recent downturns have raised questions. Geraci pointed out that Bitcoin’s decline of more than 25% from its record high in October 2025 further complicates the narrative. The cryptocurrency has failed to provide clear answers on whether it can act as a stable safe-haven asset during times of market stress.
Bitcoin’s Mixed Performance During Market Selloffs
Bitcoin’s price performance has been erratic during key moments of market volatility. Geraci noted that Bitcoin performed well during the “tariff tantrum” in April 2025, when a broader stock market selloff followed President Trump’s tariff announcements. Bitcoin rallied during this period, which led some to view it as a potential store of value, like gold.
However, during later selloffs in the technology sector, Bitcoin underperformed, losing more value than traditional equities. This pattern of sharp price movements has led to skepticism about Bitcoin’s ability to consistently act as a safe-haven asset.
Despite this volatility, Geraci believes that Bitcoin still holds long-term promise. He suggested that Bitcoin’s relatively short history—at only 15 years old—means it has not yet matured to the level of stability seen in traditional safe-haven assets like gold. “It is only 15 or 16 years old, so still has to prove itself as that digital store of value,” Geraci said.
Unlike gold, which has thousands of years of history as a store of value, Bitcoin’s track record is still evolving. This leaves room for future development but also presents significant uncertainty for investors.
Investor Sentiment and Bitcoin’s Market Flows
While Bitcoin’s role as digital gold remains uncertain, investor sentiment appears to be shifting. According to Geraci, Bitcoin ETFs have experienced significant inflows, particularly after the SEC approved spot Bitcoin ETFs in 2024.
These inflows suggest that institutional investors are betting on Bitcoin’s potential to gain stability in the long run. However, recent outflows from Bitcoin ETFs signal that investor confidence may be waning, particularly in the wake of its recent price declines.
Bitcoin’s role in the broader crypto market is also evolving. Geraci pointed out that the growing popularity of crypto index ETFs, which invest in a basket of digital assets rather than focusing on a single cryptocurrency, may offer a more diversified approach for investors. Despite this, Bitcoin is still seen as a unique asset within the cryptocurrency space. It remains the focus of many investors who believe that, in time, it will develop the stability and reliability of gold.
The Future of Bitcoin as Digital Gold
Looking ahead, Geraci expressed optimism about Bitcoin’s future but cautioned that it is too early to draw definitive conclusions. While Bitcoin has shown significant growth since early 2024, its performance during market downturns remains a key concern for those considering it as a store of value. “The jury is still out,” Geraci said, acknowledging the need for more time before Bitcoin can prove its worth as a non-correlated asset like gold.
As Bitcoin continues to evolve, its role in investment portfolios will likely change. Geraci suggested that Bitcoin’s volatility may diminish as the asset matures, but this will require time and further proof of stability. Until then, investors should remain cautious and realistic in their expectations, understanding that Bitcoin’s status as digital gold is still in its early stages.
