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Bitcoin’s buzz is gone. Investors chose real gold in 2025 | Nils Pratley

1 day ago
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Another week, another record high for the price of gold.And another blow to the bitcoin fan club’s hopeful thesis about owning “digital gold”.This year has been hard for the bitcoin brigade: while real gold soared in value, their cryptocurrency didn’t.Correlation went out of the window.Gold is up 70% so far in dollar terms; bitcoin is down 6%.

In theory, conditions should have been perfect for bitcoin if, like gold, it is supposed to be a store of value in uncertain times.Geopolitical tensions have been high all year, with Donald Trump’s unclear intentions towards Venezuela now added to the mix.Or, if you take the view that bitcoin is a hedge against currency debasement by governments, the news flow ought to have been encouraging.The US budget deficit remains enormous: the International Monetary Fund predicts the country’s debts will climb from 125% to 143% of annual income by 2030, or more than Greece and Italy.Alternatively, if bitcoin is meant to be a vehicle for tech-related enthusiasm, the artificial intelligence revolution should have offered semi-helpful breezes.

Beyond the debate about a bubble in AI assets, chipmaker Nvidia’s share price is still up by a third since January.Meanwhile, the regulatory backdrop was outright supportive.Crypto exchange-traded funds are now marketed by mainstream financial houses.The crypto-cautious UK financial regulator has published proposals to regulate many areas of the crypto market.Therein – perhaps – lies half an explanation.

Bitcoin is simply more boring now that it has been incorporated into the financial mainstream.If JP Morgan and BlackRock are referring to bitcoin as a regular class of asset, something of the revolutionary spirit is lost.Google searches for “bitcoin” are merely steady these days.Even Elon Musk has other things to tweet about.As the chart shows, the paths of gold and bitcoin only properly diverged in October during a rapid sell-off in the latter.

Precisely what happened on 10 October is still debated, but large selling by leveraged holders of bitcoin into a thin market, in reaction to a Trump tariff threat towards China, is part of the story.The point, though, is that bitcoin didn’t bounce back afterwards, as stocks and precious metals did.The crypto market as a whole shed more than $1tn of value in six weeks.From a high of $126,000 in early October, bitcoin now stands at roughly $87,000.In a research note a month ago, Deutsche Bank analysts offered five factors as an explanation of the fall: a broader “risk-off” sentiment in markets in October, hawkish signals on interest rates from the Federal Reserve, less regulatory momentum than expected, thin liquidity and outflows from institutions, and profit-taking by long-term holders.

Its conclusion: “Whether bitcoin stabilises after this correction remains uncertain,Unlike prior crashes, driven primarily by retail speculation, this year’s downturn has occurred amid substantial institutional participation, policy developments and global macro trends,”For true bitcoin believers every setback is a buying opportunity,Their faith tends to be unshakable and, given how the cryptocurrency has recovered from falls in previous years, one can’t say they are definitely wrong,Yet it does also feel as if something cracked this year.

When demand was high for a proper defensive hedge, investors preferred gold (and silver, which performed even better) over computer code that has failed to take off as a medium of exchange.And the year ends with questions being asked about the real depth of the market for bitcoin and its imitators.The speculative buzz ain’t what it used to be.
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Stokes calls for ‘empathy’ for England players and pledges support for Duckett

Ben Stokes has called for the public and the media to show “empathy” towards his embattled England players. It comes as their Ashes campaign threatens to fully unravel in response to a guaranteed series defeat and allegations of excessive drinking during a mid-tour break in Noosa.Sitting 3-0 down going into the Boxing Day Test, England have been hit by reports that their downtime in between the defeats in Brisbane and Adelaide was akin to a “stag do”. The emergence of footage appearing to show Ben Duckett drunk and slurring his words on a night out has heightened things.The video, taken by an English traveller called “Sam” and posted on social media, has not cost Duckett his place albeit England have made changes to their XI for the fourth Test

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In the first session Australia set off at a lick, surging to 102 without loss with David Warner’s 83 the crux. Warner would go on to notch his 21st Test century, but not without a spot of drama when one run shy. Pity poor Tom Curran, who thought he had claimed Warner on 99 after the batter had spooned to mid-on and the eager hands of Stuart Broad. However, a replay revealed the England bowler had overstepped and his maiden Test wicket was snatched from his grasp.That moment of torment typified England’s sorry Ashes campaign, though this fourth Test would end in a draw thanks to Alastair Cook’s stalwart 244

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Harry Redknapp eyes King George glory in ‘Champions League’ of racing

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Trump loomed over sport like never before in 2025. Next year he will take even more

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Alex Sarama: how a 30-year-old Englishman became an WNBA head coach

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Scott Boland reveals uncomfortable truth about standing up to England during Ashes

The unorthodox strategy has proved crucial for the Australians in their Ashes victory this summer, but fast bowler Scott Boland has admitted it has not always been easy – both for his ego and his length – to have wicketkeeper Alex Carey stand up at the stumps.Carey’s proximity to the wickets off the fast bowling of Boland, as well as Michael Neser in the second Test, has prevented England’s batters from standing out of the crease – a key tool in their pre-series plan to unsettle Australia’s bowlers.The tactic has delivered crucial wickets, but beyond the scorecard it has been identified as an important reason England have not been able to impose their will on the series that was lost inside 11 days. And it is only possible due to Carey’s talent with the gloves.Ahead of the Boxing Day Test, Boland said the tweak has been an adjustment for him and something of a blow to his ego, given he is one of the best pacemen in the country and typically bowls close to 140km/h

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