Overview

Given Trump’s vocal support for cryptocurrency, investors are questioning the traditional role of gold. In light of this, André Dragosch from Bitwise Asset Management compares both assets, highlighting that while gold protects against equity downturns, Bitcoin may serve as a buffer against bond market pressures.

Key Points

• Gold is the preferred choice during stock market declines, while Bitcoin stands out during tensions in the bond market.
• In 2025, gold surged more than 30% and Bitcoin approximately 15%, showcasing their contrasting performances amid changing economic conditions.
• Historical market trends indicate gold’s reliability in equity downturns, whereas Bitcoin has been showing potential during challenging bond market landscapes.

Historical Context

Gold has consistently been a go-to asset in times of market distress. For example, during the 2022 stock market downturn, gold prices saw a modest increase while the S&P 500 faced significant losses.

Meanwhile, Bitcoin tended to falter during equity downturns but has exhibited resilience in relation to government bonds, offering investors an alternative perspective in portfolio strategy where both assets serve unique purposes.

Conclusion

Investors should consider maintaining both gold and Bitcoin in their portfolios, recognizing that each asset offers different protective benefits based on varying market conditions. This balanced approach can optimize risk and enhance overall portfolio returns.