August puts a small tooth on what remains a longer uprising for digital properties. Bitcoin fell about 6.5%-the first monthly decline since March-after a short handling of a new all-time high of $ 125,000 mid-month. Ether, in contrast, expands its strong running, gains almost 19% and lifts its part of the general market capitalization of almost 13%. This cycle from Bitcoin to Ether is also seen in ETFs: Bitcoin funds have seen rare net flows, suggesting some income earnings after this year’s rare rally, while Ether ETF attracts heavy flow that pushes the properties under management to record levels. As a result, Bitcoin’s dominance has slipped to its lowest point since January, leaving the general capitalization of the market of digital assets almost flat on the moon.
Despite this performance, market activity has remained elevated. Spot trading volumes held above their twelve months average-unusual for the usual quiet summer season-and the derivatives markets are alive. The open interest in Bitcoin and Ether’s options has reached new highs, and August has set a record for BTC volumes options for $ 145 billion. The indicated volatility remained somewhat covered but ticking until the end of the month, indicating that the options market may minimize risk.
While Bitcoin was silent, the gold dripped. A perfect storm of collapse of rate expectations, ongoing major inflation, expanding trade deficiencies, a weaker dollar, geopolitical risks and mounted political uncertainty pushed the yellow metal to the next high records. The departure of the Fed Governor Lisa Cook of the Trump administration further stimulated the concerns of the Federal Reserve’s long-term independence. Treasury yields slightly, but gold – as a traditional fence against inflation and systemic risk – jumps sharply. However, Bitcoin exchanged the day the news was broken.
It raises the long -term question of whether bitcoin is truly deserving of the “digital gold.” Its lack and libertarian origin supports similarities, but the data tells a more annoying story. Short-term relationships between Bitcoin and gold are inconsistent, oscillating around 12% and 16% in both 30- and 90-day windows. More than longer reaches -Wers (180d)The average correlation is slightly higher, but still low. In other words, the two owners are not reliable together. However, since 2024, the average 180-day cycle has shown a significant uprising around 60%. The effect can be seen in shorter reaches, even less pronounced. A reasonable interpretation is that the narration of ‘digital gold’ begins to get firmer footing with investors as the asset class grows older.
It is also worth remembering that gold itself has an imperfect track record as a macro and inflation hedge. It does not monitor the prices of consumer month -three, even for decades it has maintained the power of buying better than most owners. Research also shows that gold can serve as a safe shelter during stages of severe equity stress, but not always, as the mix of its relationship with VIX.
For Bitcoin, the narrative is still in action. Some investors view it as a technology -playing; Others see it as an emerging macro hedge. We believe that the latter will prove more durable over time. Unlike other blockchains, bitcoin limalan scalability, strict management and lack of completion of completion means that it is not likely to be a multi-application platform. Other protocols are better suited to that paper. Instead, the long-term Bitcoin value measure depends on its deficiency and neutrality-the features that make the role of gold.
Of course, such stories take time to strengthen. Millennia gold needs to be widely accepted as a store of value. Bitcoin, by comparison, is only sixteen years old, however it has achieved amazing -wonderful levels of recognition and adoption. The “digital gold” similarity may not be fully supported by the data today, but it is too early to delete it. If anything, history suggests that the story is still written.
Legal decline
The information presented, displayed, or otherwise provided is for educational purposes and should not be indicated as investment, legal, or tax, or an offer to sell or an request to buy any interest in a fund or other investment product. Accessing the products and services of the Lionsoul Global Advisors are subject to qualities and the specific terms of the documents between the Lionsoul’s potential clients and global advisers, as they may be amended by the time.
