Bitcoin's Waning Dominance: The Rise of Gold and Equities in Late 2025

The cryptocurrency market has long been a theater of volatility and speculation, but late 2025 is witnessing a seismic shift in asset allocation dynamics. Bitcoin, once the uncontested king of digital assets, is facing mounting pressure from traditional safe-haven assets like gold and equities. This reallocation reflects broader macroeconomic trends, institutional strategies, and investor sentiment recalibrating to a post-halving environment.

Bitcoin's Post-Halving Surge and Structural Challenges

Bitcoin's price surged to $116,592 in Q3 2025, fueled by the network's halving event and the approval of spot ETFs, which unlocked institutional capital flows, according to a Mooloo report. Projections from major investment firms suggest it could reach $150,000–$200,000 by year-end, the Mooloo report says. However, this optimism is tempered by Bitcoin's inherent volatility-its price swings often exceed 50%-which contrasts sharply with the relative stability of gold and equities, the Mooloo analysis notes.

While Bitcoin's narrative as a hedge against currency devaluation and inflation remains compelling, its dominance is being challenged by gold's resurgence. Gold prices hit a record $3,800 per ounce in September 2025, driven by central bank accumulation and geopolitical tensions, according to a TwelvePoints Wealth review. The review reports that global central banks added 450 metric tons of gold to reserves in Q3 alone, signaling a preference for tangible assets amid U.S. debt concerns.

Equities: The Fed's Gift to Risk-On Investors

Equities have also outperformed Bitcoin in late 2025, particularly in the technology sector. The S&P 500 climbed 8% in Q3, buoyed by the Federal Reserve's first rate cut of the year, which reduced borrowing costs and incentivized risk-taking, the TwelvePoints Wealth review notes. Tech stocks, led by AI-driven giants, accounted for over 60% of the index's gains, reflecting a broader shift toward innovation-driven growth.

This performance has prompted investors to question whether Bitcoin's volatility justifies its place in a diversified portfolio. As stated by Mooloo's strategic allocation report, equities offer a "balanced blend of growth and stability," particularly in a low-interest-rate environment.

The Gold vs. Bitcoin Debate: Safe Haven vs. Speculative Play

Gold's appeal lies in its role as a "wealth preservation" asset. With geopolitical tensions spiking and U.S. debt surpassing $35 trillion, central banks and high-net-worth individuals are increasingly treating gold as a counterparty-free store of value, the review observes. Meanwhile, Bitcoin's narrative as a digital alternative to gold is fraying. While institutional investors allocate 1–5% of portfolios to Bitcoin for growth, gold commands a larger 5–15% allocation for stability, per Mooloo's findings.

The cost of accessing these assets further tilts the balance. Gold ETFs, with expense ratios as low as 0.15%, are more cost-effective than Bitcoin ETFs, which charge 0.5–0.75%. This disparity, combined with Bitcoin's 50%+ volatility, has made gold a more attractive option for conservative investors.

Conclusion: A Portfolio in Transition

The late 2025 reallocation reflects a maturing market where investors are prioritizing stability and diversification over speculative bets. While Bitcoin's post-halving rally is impressive, its dominance is being eclipsed by gold's resilience and equities' growth potential. For now, the debate between these assets remains unresolved-but the data suggests that Bitcoin's reign as the ultimate inflation hedge is far from guaranteed.