Interest among younger investors in traditional assets has grown in 2025, while Bitcoin (BTC) has lost momentum amid a more uncertain macroeconomic backdrop.
Inflationary pressures, rising geopolitical risks, and doubts surrounding monetary policy have pushed capital toward safe-haven assets, particularly gold and silver.
At the same time, Bitcoin—often promoted as “digital gold”—has delivered weaker performance. While the cryptocurrency still holds long-term structural relevance, it has failed to attract new investor inflows at the same pace as physical precious metals this year.
Young Investors Shift Toward Gold
Across several global markets, gold has begun attracting a new audience. Market reports indicate that individuals with little or no prior experience in financial assets are entering gold and silver markets directly, largely bypassing crypto.
In the Middle East, for instance, local media data shows that first-time buyers now account for roughly 55% to 60% of gold demand. This group, made up mostly of Gen Z and millennials, increasingly views gold as protection against inflation and economic instability.
Buying behavior has also shifted. Although jewelry sales volumes have declined, total spending has risen. Investors are prioritizing gold bars, coins, and smaller pieces that offer better liquidity and easier resale. A similar trend has emerged in India, where investment demand for gold remains strong despite weakness in the jewelry segment.
This shift is not limited to retail investors. Central banks have also increased their exposure. In the third quarter of 2025, global gold reserves surpassed 40,000 tonnes, the highest level in at least 75 years. In October alone, net purchases reached 53 tonnes.
Bitcoin Weakens in a Risk-Off Environment
Meanwhile, Bitcoin has struggled to gain traction. Over recent months, the asset has traded sideways, reflecting reduced risk appetite across markets.
Analysts note that during periods of uncertainty, capital typically flows first into traditional defensive assets such as gold and government bonds. In this context, BTC continues to behave more like a risk asset than a true store of value.
On-chain data reinforces this view. Indicators point to negative apparent demand, suggesting that fresh buying has failed to keep pace with available supply. In addition, short-term metrics show that some recent buyers continue to sell near break-even or at a loss, limiting upside momentum.
Network activity has also cooled. The average number of active addresses has dropped to its lowest level of the year, while exchange inflows and outflows have declined. Although long-term holders are not selling aggressively, accumulation has also slowed.
Can the Crypto Market Still Surprise?
Despite current headwinds, some analysts argue that weak retail participation does not necessarily signal a market top. Historically, major crypto bull cycles tend to end when retail enthusiasm reaches extreme levels.
This time, however, broad public interest never fully materialized. Recent price movements were driven largely by institutions and structured products, such as spot ETFs, rather than retail speculation.
As a result, while gold is clearly winning the battle for capital in 2025, part of the market believes Bitcoin could still benefit from a future rotation. Until then, investor preference appears firmly tilted toward tangible assets, in an environment defined by caution, persistent inflation, and ongoing global political uncertainty.