Bitcoin News Today: Bitcoin's Shift From Digital Gold to Stock-Like Volatility Challenges Safe-Haven Narrative

Bitcoin (BTC-USD) experienced a maximum drawdown of -93.18% as of July 2025, according to comparative data from Portfolioslab, despite a year-to-date (YTD) return of 26.69% and a 10-year annualized return of 82.20%. This stark volatility contrasts with Goldmoney Inc. (XAU.TO), which saw a max drawdown of -83.45% but a significantly lower YTD return of 11.43% XAU.TO vs. BTC-USD — Investment Comparison Tool^[1]. The cryptocurrency's risk-adjusted performance ranks 89 out of 100, outperforming gold's 55, yet its current drawdown of -1.36% indicates a partial recovery from earlier losses XAU.TO vs. BTC-USD — Investment Comparison Tool^[1].

The year 2025 marked a 29.89% increase in the BTC/USD exchange rate, with the highest rate reaching $123,026 on August 13 and an average of $102,591 BTC to USD Exchange Rate History for 2025^[2]. However, Bitcoin's price trajectory diverged from gold's traditional safe-haven narrative. While gold surged to record highs above $3,470, Bitcoin's price fell from a peak of $108,000 to $76,000 by April 2025 before rebounding to $88,200 Bitcoin ETFs Capture 70% of Gold Inflows in 2025^[6]. Analysts attribute this decoupling to Bitcoin's growing correlation with equities, as institutional traders increasingly classify it alongside volatile assets like the Nasdaq What's powering gold and bitcoin surges? – DW^[4].

The U.S. Dollar Index (DXY) declined 9% YTD in 2025, historically a tailwind for Bitcoin, yet the cryptocurrency posted a 6% YTD loss. This deviation reflects shifting investor sentiment amid global trade tensions and U.S. government shutdowns, which spurred capital rotation into gold and the Euro Currency Index (EXY) Bitcoin ETFs Capture 70% of Gold Inflows in 2025^[6]. Binance Research noted that Bitcoin typically gains 43% during DXY drops of ≥5%, but 2025's dynamics suggest a structural shift in its market role What's powering gold and bitcoin surges? – DW^[4].

Institutional adoption of Bitcoin ETFs accelerated, capturing $13.5 billion in net inflows in 2025-70% of gold ETFs' total inflows. By July 2025, cumulative spot Bitcoin ETF flows neared $50 billion, driven by products like BlackRock's IBIT . This momentum highlights Bitcoin's growing acceptance as a strategic asset, though its 7.34% volatility remains higher than gold's 6.26% XAU.TO vs. BTC-USD — Investment Comparison Tool^[1].

Analysts warn of Bitcoin's evolving identity as a "stock-like" asset. Jim Iuorio of TJM Institutional Services noted that Bitcoin's sell-offs often mirror Nasdaq declines, undermining its "digital gold" narrative. Meanwhile, gold's 50% YTD rally since the 1970s underscores its enduring appeal as a hedge against dollar devaluation and geopolitical risks Bitcoin shows weakness in 2025 amid its decoupling from Gold^[5].

Despite these challenges, forecasts remain optimistic. Standard Chartered's Geoffrey Kendrick predicted Bitcoin could reach $135,000 by year-end amid the U.S. government shutdown and Trump-era crypto-friendly policies Bitcoin shows weakness in 2025 amid its decoupling from Gold^[5]. However, Bitcoin's 93.18% max drawdown and recent volatility highlight the risks of its speculative positioning in portfolios XAU.TO vs. BTC-USD — Investment Comparison Tool^[1].