The run in these alternative assets may have much further to go
It’s been another great year to invest in stocks. Even if you’re not a stock picker, just being in an index fund like the SPY has generated a nice return of around 13%. That’s higher than the index’s historical average but slower growth than in 2023 and 2024.
To be fair, that’s a return that many investors would be happy with. However, it’s worth noting that two asset classes have handily outperformed stocks in 2025. Those are and Bitcoin, which are up about 50% and 33% respectively.
In addition, gold has also proven to be a valuable asset during times of uncertainty.
Many investors have their reasons to dislike both and Bitcoin. Other investors choose to put themselves in one camp or the other. That seems unnecessary, and in the current economic climate, it could have a negative impact on your portfolio.
This isn’t going to be a doom-and-gloom post. Stocks are likely to finish the year strong, and 2026 is likely to be a strong year as well. However, and Bitcoin, which typically have an inverse relationship with stocks, should be performing poorly. But their performance is not only correlating with stocks; it’s outperforming them.
But for different reasons. That’s why if you’re interested in diversifying and hedging your portfolio, this may be a time to consider, Bitcoin, or both.
Correlation Doesn’t Equal Causation
The bull market in both and Bitcoin didn’t start in 2025. Both assets have been moving higher for close to two years. This seems to contradict a truth about how the price of and Bitcoin correlate with the stock market.
Historically, both have had an inverse relationship with stocks. Yet, and Bitcoin aren’t making a statement about the stock market; they’re making a statement about fiat currency, particularly the U.S. dollar.
There’s a reason for that. In the first half of 2025, the U.S. dollar had its biggest loss since 1973. The greenback was down 11% against its major trading partners.
That suggests something else is going on. In this case, investors view and Bitcoin as hedges against the high amount of debt held by world governments. In that sense, serves as a vote of no confidence that the world’s books will get sorted out anytime soon.
Why This Move in Gold is Different
has made headlines for the ability of individuals to buy bars at Costco. But the surge in the spot price isn’t being driven by retail investors. Central banks around the world continue to buy and hold. The reason is simple. The governments of these countries are questioning the dollar’s safe-haven status.
Remember, it doesn’t matter what you believe about the nation’s debt. But it does matter what these central banks think. For now, they’re betting on. And considering that continues to rise even as the U.S. government is shut down. It’s not likely that the central banks believe less U.S. government spending is coming, which will be bullish for.
Why Bitcoin May Be Ready For Another Run
Bitcoin has gone from an investment on the lunatic fringe (i.e., you’d have to be crazy to own it), to an asset class being purchased and leveraged by many of the world’s leading institutional investors.
In late 2024, Bitcoin cracked the psychologically important $100,000 mark. Many thought a crash was imminent, instead Bitcoin moved above $120,000, and after a brief pullback recently hit an all-time high over $125,000.
Many believe this is just the start, and that’s based on historical data that shows is a leading indicator for Bitcoin. That means, the performance of can often lead Bitcoin by several months. And the recent surge in the price of Bitcoin may be the first sign that Bitcoin is ready to have a run of its own.
And the Winner Is…?
In absolute terms, it looks like the winner for the fourth quarter will be. However, there are good reasons for investors to hold both in their long-term portfolios.
One factor to consider is your primary objective for owning and/or Bitcoin. If liquidity is a key consideration, then Bitcoin is a more attractive option. Bitcoin can be converted into U.S. dollars or the fiat currency of your choice in seconds. And there’s increasing evidence showing a path for Bitcoin to become an accepted payment option in the future. If and when that happens, Bitcoin is likely to rocket higher.
If the volatility of Bitcoin doesn’t fit your risk tolerance, may be the better choice. There are considerations around owning and storing physical. However, you can get exposure through ETFs or mining stocks, which have been part of a recent catch-up trade with.
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