Gold prices are approaching $5,000 (USD) per ounce after hitting new all-time highs. This move takes place without any visible correlation with Bitcoin (BTC). The digital currency is still in a correction phase since hitting a record high of $126,000 in October.
Despite this short-term divergence, analysts and managers emphasize the structural similarities between both assets. In particular, its role as a scarce asset as a hedge against fiat devaluation and unlimited printing. How to read it Long-term bullish expectations for Bitcoin remain highEven if its price has shown recent weakness.
Fund manager James Lavish focused on the performance of metal complexes. “Are you paying attention? Gold is up about 80% in one year, platinum is up 175% and silver is up an incredible 200% in one year,” he said. In his vision, “we are not only devaluing people, we are destroying people.”
According to his view, The debate is no longer about the direction of BTC price. “The next question is not if Bitcoin will rise again, but when.” In his opinion, it is inevitable that Bitcoin as an asset scheduled for issuance will not be favored as a haven against fiat devaluation.
Dan Tapiello, investor and founder of capital fund 50T Funds, also mentioned the precious metals rally. as a leading indicator Parabitcoin.
“Top-down reassessments of this nature are very rare in history if you are trying to determine whether there is a new world order,” he said. He emphasized that gold is a “$35 trillion asset that has doubled in two years.”
For investors, The process is not limited to gold: “A revaluation of other assets will proceed.” In that framework, he believes BTC is “next.”
The amount of Bitcoin issued through mining is halved every four years. This reduction occurs until its total capacity is exhausted. 21 million BTC, planned for 2140. For this reason, it is even considered an improved gold asset, although it is unclear how much gold is mined on Earth.
Bitcoin dilemma between digital gold and risk assets
At Ark Invest, the company’s CEO Cathie Wood provided extensive insight into the relationship between both assets. He emphasized that despite the theory that BTC is digital gold, “surprisingly, Bitcoin and gold are not correlated across market cycles.”
He highlighted that since the end of the 2022 equity bear market, despite the recent decline, “gold is up about 165-170% and Bitcoin is up about 360%.” Digital currencies have much greater volatility and, despite their fundamentals as digital gold, like risk assets they tend to react downward during periods of macroeconomic uncertainty.
In that sense, Mr. Wood argued that: Bitcoin combines features that are often considered opposites. “I believe Bitcoin is a risk asset and ultimately a safe asset,” he said.
He further emphasized, “It is a hedge against inflation because the issuance amount increases by only 0.85% per year, and it is also a hedge against deflation because, unlike the traditional banking system, there is no counterparty risk.”
For managers, “Bitcoin has played many roles as a risk asset” in recent years. “Institutional investors are coming in through spot ETFs and are studying assets carefully to try to understand the four-year cycle,” he added.
We believe Bitcoin represents three revolutions in one: a rules-based global monetary system that competes with fiat currencies, a technological revolution, and new asset class leadership.
Cathie Wood, Founder and CEO of Ark Invest.
As for prices, the businesswoman warned, “We may retest in the $80,000 to $90,000 range.” But he’s hopeful that “that test will pass” and we’ll be back in the bull market.
Retailer and Institutional Enthusiasm
Amid divergence between metal and digital currencies, enthusiasts are calling for calm.
That includes an on-chain analyst known as Checkmate, who said, “There are Bitcoiners who couldn’t support gold’s 6-month rally. Their conviction melted away after seeing gold having a normal positive year for corn (incidentally, after Bitcoin went positive for two consecutive years).”
The analyst alluded to historical debates between proponents of various assets. “Peter Schiff has felt that way for 17 years, and he will feel that way again soon,” he said. He added in a sarcastic tone, “His silver hair grew out waiting for silver to grow.”
In his message, he urges people to avoid extreme positions. He makes the distinction that in the long term, “both assets are up significantly,” and believes it’s logical to have both. And he concluded with a general warning: “There is no bottom for Fiat.”
Interest is not limited to the retail sector. On Wall Street, Bitwise yesterday launched an exchange-traded fund (ETF) targeting Bitcoin, gold, silver, other precious metals, and mining stocks. The fund provides exposure to assets that cannot be easily inflated or manipulated as a hedge against fiat devaluation.
market still in its infancy
Still, the story of Bitcoin being “digital gold” Living with episodes that do not match that idea. As reported by CriptoNoticias, in the same week its price reacted to macroeconomic factors such as the stock market. These include rising Japanese government bond yields and Donald Trump’s tariff threats, which were later rescinded.
Mike McGlone, Strategist merchandise Bloomberg warned that these developments are not isolated. For analysts, Bitcoin serves as a leading indicator of risk assets. Although the stock market has corrected, it remains near historic highs, and for analysts that may be about to change. He predicts that if BTC continues to fall, the stock price will fall even further.
The divergence from the current gold is This does not invalidate the theory of Bitcoin as a long-term hedge.as our understanding of its properties deepens. Rather, it will reinforce the idea that both assets respond to different times and dynamics within the same global financial process that is witnessing the devastation of the fiat monetary system.
Its implementation is still in its early stages, meaning that in the face of global tensions, we will see an exit rather than a gold-like entry. As analyst Joe Consorti summed up for the bulls: “Bitcoin’s collapse, due to geopolitical escalation rather than competition with gold and silver, tells us just how far ahead we are.”
It took centuries for gold to acquire its role as a reserve of value against crises. It is understandable that Bitcoin has not yet reacted that way to macroeconomic shocks. However, she is still young, only 17 years old. BTC is considered an asset that follows in the footsteps of metals.
