Will Bitcoin Outshine Gold in 2025? CZ Predicts a "Flippening" as Market Caps Converge
- The Great Store-of-Value Showdown
- By the Numbers: BTC vs Gold in 2025
- Institutional Adoption: The Final Frontier?
- The M2 Money Supply Connection
- Historical Precedents for a BTC Rally
- The Road to $150K Bitcoin?
- FAQ: Bitcoin vs Gold in 2025
In a bold prediction that sent ripples through the crypto community, Binance founder Changpeng "CZ" Zhao has doubled down on his belief that bitcoin will eventually surpass gold's market value. As of October 2025, Bitcoin's $2.21 trillion market cap still trails gold's $30.34 trillion, but the gap has been narrowing significantly since BTC's inception. This potential "flippening" comes as both assets serve as hedges against currency debasement, with BTC recently retesting key trendlines against gold and showing renewed momentum. While Polymarket odds currently give Bitcoin just a 25% chance of outperforming gold by year's end, historical patterns suggest BTC rallies often follow gold peaks - just as we saw after the 2020 pandemic slump.
The Great Store-of-Value Showdown
CZ's October 20 tweet couldn't have come at a more interesting time in the Bitcoin-gold relationship. "Prediction: Bitcoin will flip gold. I don't know exactly when. Might take some time, but it will happen," the Binance CEO declared as BTC attempted to hold the $111,000 support level. What makes this prediction particularly fascinating is the context - gold was trading near all-time highs at $4,346.45/oz, while analysts widely considered Bitcoin undervalued relative to gold, with price targets of $130K-$150K needed to close the valuation gap.
Source: Cryptopolitan
By the Numbers: BTC vs Gold in 2025
The year-to-date performance tells an intriguing story. As of October 20, Bitcoin has delivered 61% gains compared to gold's 60.7% - a razor-thin margin that highlights how these assets have become increasingly correlated as inflation hedges. What's more surprising is that BTC briefly lost its lead to silver earlier this year before reclaiming its position as the fastest-growing major asset. According to TradingView data, this marks the fourth consecutive year where Bitcoin has either matched or exceeded gold's annual returns.
Institutional Adoption: The Final Frontier?
Where Bitcoin still lags dramatically is in official reserve status. Government vaults remain dominated by gold, with central banks holding just fractional amounts of BTC. However, the BTCC research team notes that Bitcoin has proven remarkably effective at offsetting currency risks - both for the US dollar and various local currencies in emerging markets. "We're seeing a quiet revolution where Bitcoin serves as a parallel reserve asset without needing official recognition," one analyst observed.
The M2 Money Supply Connection
Both assets share an important characteristic - their prices tend to track global M2 money supply growth. This explains why neither consistently outpaces inflation in nominal terms. CoinMarketCap data reveals an interesting pattern: during periods of monetary expansion, both BTC and Gold benefit, but Bitcoin's volatility creates more pronounced swings. Currently, both are experiencing what traders call "short-term anomalies" in their correlation, making the relationship harder to predict.
Historical Precedents for a BTC Rally
The 2020 pandemic provides the clearest blueprint for what might happen next. After gold peaked that year, Bitcoin embarked on a historic run to $60,000. Similar patterns emerged after previous gold rallies, though the sample size remains small. "Bitcoin tends to play catch-up with gold, then overshoot," notes a BTCC market strategist. This time around, BTC has already closed much of the gap in late 2024 before gold's recent surge created new distance between the two assets.
The Road to $150K Bitcoin?
For CZ's prediction to materialize in the near term, Bitcoin WOULD need to multiply its market cap sevenfold while gold stands still - a tall order. However, when BTC launched in 2009, gold's market cap stood at $8 trillion. The precious metal's value has since grown nearly 4x through periods of stagnation. Bitcoin, meanwhile, has achieved compound annual growth rates that make even tech stocks envious. If these trajectories continue, a flippening becomes mathematically plausible within this decade.
FAQ: Bitcoin vs Gold in 2025
What did CZ predict about Bitcoin and gold?
Binance founder Changpeng Zhao predicted that Bitcoin's market value will eventually surpass gold's, though he didn't specify an exact timeline for this "flippening" to occur.
How do Bitcoin and gold's market caps compare in 2025?
As of October 2025, Bitcoin's market capitalization stands at approximately $2.21 trillion compared to gold's $30.34 trillion valuation.
What are the current odds of Bitcoin outperforming gold by end of 2025?
According to Polymarket data, the probability stands at about 25% as of late October 2025.
How have Bitcoin and gold performed year-to-date in 2025?
Bitcoin has gained 61% year-to-date, slightly outperforming gold's 60.7% return as of October 20, 2025.
What historical pattern exists between gold peaks and Bitcoin rallies?
Historically, Bitcoin has tended to rally after gold reaches peak prices, as seen notably after the 2020 pandemic when BTC surged to $60,000 following gold's peak.
