A growing share of bitcoin and digital asset investors in the United States are rotating part of their portfolios into gold, reflecting a shift in sentiment after years defined by crypto market swings and rapid price cycles.
A recent survey by MarketWise, which polled 1,000 active investors with exposure to both traditional and digital assets, found that 18% sold or reduced crypto holdings over the past year to purchase the metal. The move comes as many participants reassess risk following periods of steep drawdowns in digital markets.
The data points to a complicated relationship with crypto rather than a wholesale exit. While nearly one in five investors trimmed positions, 41% said they plan to increase crypto exposure over the next 12 months. That figure rises among younger cohorts, with Gen Z investors showing the strongest appetite for digital assets even as they also increase allocations to gold.
At the center of the shift is volatility. Among respondents who changed their investment focus between crypto and gold, 27% cited market swings as the primary driver. Inflation concerns followed at 18%, underscoring the broader macroeconomic backdrop shaping investor behavior, according to the survey.
Losses appear to have left a mark. The survey found that 56% of digital asset investors reported losses exceeding 20% in crypto, compared with 11% who experienced similar declines in the precious metal. That divergence has influenced perceptions of reliability, particularly in moments of stress.
When asked which asset they would trust during a financial emergency, 60% of respondents chose gold, while 13% selected Bitcoin. Long-term confidence also leaned toward the precious metal, with 73% saying gold would hold value over the next century, compared with 19% who said the same for Bitcoin.
Performance data over the past five years adds another layer to the debate. Between March 2021 and February 2026, gold delivered a total return of 206%, compared with 56% for Bitcoin. The study also found that Bitcoin exhibited roughly four times the volatility of gold based on monthly return deviations.
Still, the comparison depends heavily on timeframe and entry point. Bitcoin has historically delivered sharp gains during bull cycles, often outpacing traditional assets over shorter periods. Its role as a decentralized, scarce digital asset continues to attract investors seeking alternatives to fiat systems and traditional stores of value.
Portfolio allocation trends reflect this duality. On average, surveyed investors hold nearly three times more in crypto than in gold. Gen Z participants stand out, allocating 27.8% of their portfolios to crypto and 7.6% to gold, higher than older generations on both fronts. The data suggests younger investors are not abandoning digital assets but pairing them with more established hedges.
Why is gold appealing?Â
Gold’s appeal rests on familiarity and history. Respondents pointed to crisis protection, inflation resistance, and a long track record as key reasons for trust. Crypto, by contrast, remains tied to narratives of innovation, financial independence, and asymmetric upside.
Rather than a clear rotation out of crypto, the findings suggest a rebalancing shaped by experience. Investors who once leaned into high-growth digital assets are now layering in stability, informed by past losses and shifting economic conditions.
For Bitcoin, the challenge and opportunity lie in bridging that gap. As institutional adoption expands and market infrastructure matures, its volatility may evolve. Until then, many investors appear content to hold both narratives at once: gold for preservation, crypto for possibility.
Recently, JPMorgan research said Bitcoin’s long-term investment case versus gold is strengthening, as rising gold volatility narrows the risk gap between the two assets despite Bitcoin’s sharp sell-off.
Bitcoin has fallen nearly 50% from its peak above $126,000 and is trading below its estimated production cost, while gold surged over the past year on strong safe-haven demand.
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