Bitcoin and gold have become the two worst-performing major asset classes of the year so far, marking an unusual first in data stretching back to 2011.
The development comes as higher oil prices and renewed expectations for tighter monetary policy have undermined two assets that had recently benefited from concerns over debt, deficits, and currency debasement.
Gold and BTC Still Struggle
Data compiled by Creative Planning Chief Market Strategist Charlie Bilello showed that, through October 23, gold was down 7.5% year-to-date while BTC’s loss stood at 7.3%. Since then, though, both assets have retreated further, and the losses are 10% for the metal and over 11% for the cryptocurrency.
This places them at the bottom of the 21 major asset classes included in his annual rankings. Bilello said there has not been another calendar year in his dataset in which the precious metal and the largest cryptocurrency simultaneously occupied the final two positions.
The contrast with other markets is hard to ignore. Commodities have gained over 50% this year, US large-cap stocks are up by more than 12%, and even short-term Treasury bills have returned nearly 3%.
Gold’s reversal since January has been particularly dramatic. The precious metal gained 64% in 2025 and surged to a new all-time high of $5,500 per ounce intraday in late January 2026 before subsequently erasing these gains. It briefly dipped below $4,000/oz at the start of the week and stands inches above that level now.
Bitcoin, on the other hand, slumped from its 2025 all-time high of $126,000 to under $58,000 in early July before it staged a notable comeback to $87,000. However, it dumped back to $80,000 as of now, which shows a 35% decline since its peak, after the rejection at $87,000. It could also head toward a second consecutive negative year if the landscape doesn’t improve.
Where Did the Debasement Trade Go?
The latest performance is especially interesting because gold and bitcoin moved together for precisely the opposite reason just a few months ago. As we reported in August, both assets rallied strongly as concerns surrounding the US debt burden, Treasury markets, and a weakening dollar revived the “debasement trade” – buying scarce assets as protection against the declining purchasing power of fiat currencies.
At the time, the precious metal neared $4,600 while BTC rocketed by $15,000 in days. The macro backdrop, though, has changed considerably since then. Gold dropped 4% last week as surging oil prices and increased inflation concerns pushed markets toward expecting additional Federal Reserve tightening.
ING argued that bullion failed to benefit from falling equities and lower Treasury yields, suggesting investors focused more on the inflationary implications of expensive energy.
Higher rates are particularly problematic for non-yielding assets because investors can earn increasingly attractive returns from cash and government debt instead. Still, the longer-term comparison tells a very different story. Bilello’s data show BTC has returned roughly 120.6% annualized since 2011, while gold’s gains stand at 6.3% over the same period.
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