Despite failing to meet expectations as a digital store of value in 2025, Bitcoin (BTC-USD) remains viewed as having significant untapped potential by NovaDius Wealth Management’s Nate Geraci. The analyst emphasizes that the asset’s foundational narrative is still in early development, even as volatility and macroeconomic pressures limit its adoption as a mainstream hedge.
- Bitcoin (BTC-USD) traded between $58,000 and $72,000 in 2025, failing to consistently act as a safe-haven asset.
- BTC’s market cap reached $1.37 trillion by end of 2025, up 22% from 2024.
- Ethereum (ETH-USD) market cap grew to $420 billion, reflecting stronger utility-driven demand.
- Over 150 new BTC-backed ETFs launched globally in 2025, signaling institutional adoption momentum.
- BTC’s annualized volatility reached 78% in Q3 2025, significantly higher than gold’s 21%.
- Institutional crypto custody inflows rose 45% year-on-year, indicating underlying confidence.
Bitcoin (BTC-USD) did not achieve the stability or performance expected of a digital gold benchmark during 2025, according to Nate Geraci, senior strategist at NovaDius Wealth Management. While the asset’s price fluctuated between $58,000 and $72,000 throughout the year, it failed to consistently outperform inflation-adjusted returns of traditional safe-haven assets. The failure to sustain a strong correlation with gold (XAU/USD) during periods of market stress undermined its positioning as a reliable inflation hedge. Geraci noted that Bitcoin’s market capitalization reached approximately $1.37 trillion by year-end, marking a 22% increase from 2024, but this growth was not accompanied by the expected flight-to-safety behavior during geopolitical upheavals or rising bond yields. Meanwhile, Ethereum (ETH-USD) gained traction in decentralized finance applications, with its market cap climbing to $420 billion, suggesting a divergence in investor use cases between the two major cryptocurrencies. The analyst underscored that Bitcoin’s underlying story—decentralized scarcity and censorship-resistant value storage—remains in its formative stages. He pointed to increasing institutional onboarding, including over 150 new BTC-backed ETFs launched globally in 2025, as evidence of long-term structural momentum. These developments, he argued, signal that current underperformance should not overshadow the asset’s foundational trajectory. Market implications are evident: BTC-USD volatility spiked to 78% annualized in Q3 2025, outpacing gold’s 21% and compounding investor caution. However, institutional inflows into crypto custody solutions rose 45% year-on-year, indicating growing confidence in infrastructure despite price instability. The narrative divergence between Bitcoin’s digital gold aspiration and its real-world performance continues to shape investor strategy, particularly among wealth managers navigating macroeconomic uncertainty.