Is the “Digital Gold” Narrative Losing Momentum?

Central banks purchased another 41 tonnes of gold in May, while Bitcoin ETFs recorded approximately $8.9 billion in outflows. After the strong post-election rally following Donald Trump’s victory, capital inflows into cryptocurrencies have slowed significantly.

Meanwhile, gold continues to strengthen its role as a strategic reserve asset for central banks and a key tool for diversification away from the U.S. dollar. With thousands of years of monetary history and no counterparty risk, it remains unmatched as a reserve asset.

Bitcoin will increasingly need to prove its value through its own fundamentals rather than relying on the “digital gold” narrative. If the current trend continues, it could signal a longer-term weakening of the Bitcoin-to-gold ratio, which is now testing a major support level after its sharp decline in 2025.

Explore our latest analysis & market notes

Connect with Silver Dominion:

Published by Silver Dominion