Due to the voice of the Trump administration and showed support for crypto, some investors wonder if gold days as the world’s favorite hedge asset counts.
André Dragosch, head of European research in Bitwise Asset Management, suggests that the choice is not so simple. In a Post on x Saturday, he offered a rule-of-thumb: gold works best as a protection against losses in the stock market, while Bitcoin is increasingly acting as a counterweight in bond market stress.
Gold: Equity hedge selected
Reasoning begins with history. When selling equally, often investors Hurry up with gold. Decades of market data back to it. Long-term gold relationship with the S&P 500 hovers near zero, and during the market stress it often dipped negatively.
For example, in the 2022 bear market, gold prices rose 5% even though the S&P 500 fell almost 20%. That pattern describes why gold is still considered classic “safe shelter.”
Bitcoin: a bond-market counterweight
Bitcoin, in contrast, often struggles during equity panics. In 2022, it collapsed more than 60% next to tech stocks. But its relevance to US wealth is more intriguing.
Lots of study Remember That bitcoin showed a low or even slightly negative correlation with government bonds. This means when bond prices are sinking and yielding increases – as they did in 2023 during the fear of debt and US deficiency – Bitcoin was sometimes held better than gold.
Dragosch takeaway: No need to choose one another. They play a variety of roles. Gold is still a better fence when stocks break, while Bitcoin can help portfolios when bond markets are under pressure from increasing rates or fiscal concerns.
How the rule holds in 2025
The split is clear this year. Until August 31, gold climbed more than 30% year-to-date, according to World Gold Council data. That progress reflects the changed demand during the equity of the equity that is tied to tariffs, slowing down, and political risk.
Meanwhile, Bitcoin gained about 16.46% this year, based on CoinDesk dataa stable performance considering that the 10-year yield of the US arrer fell to around 7.33%, According to MarketWatch data.
The S&P 500, by comparison, was approximately 10% of 2025, per CNBC data.
Diverging Performance Underscores Heuristic by Draggch: Gold benefits most from equity jitters, while Bitcoin holds it as bond markets are spreading under the weight of higher yields and heavy government borrowing.
Not just Opinion: This data supports
This is not just a personal view of Dragosch. Pretty Research Report Earlier this year it was noted that gold remains a reliable fence against the falls of the stock market, while Bitcoin tends to provide a stronger return during recovery and shows lower contact with US wealth. The report concluded that handling both properties could improve diversity and optimize risks that fit the risk.
The caveats
However, the relationships are not static. Bitcoin’s relationship with equality has strengthened in 2025 thanks to the major flow to the ETF areas, which brought billions -billions from institutional investors.
The huge net flow in Bitcoin ETF areas makes the BTC trading such a major risk owner, reducing “purity” as a bond fence.
Short-term shocks can also scramble a picture. Regulation surprises, the presence of liquidity, or macro shocks can move both gold and bitcoin in both directions, limiting their benefit -benefit as fences. Dr and Maloy’s rule-of-thumb, in other words, is just a heuristic, not a guarantee.
The bottom line
Trump’s pro-crypto stance raises a provocative question: Is it time to leave the gold completely in favor of Bitcoin? Dragosch’s response, supported by data years, is not. Gold is still best when stocks fall, while Bitcoin can offer shelter when bonds are under pressure. For investors, the lesson does not delete one possession for others, but recognizing that their hedges are at different risks – and the use of both can be smarter playing.
