In a recent report, the bank\u2019s experts highlighted that Bitcoin\u2019s volatility and its close correlation with the equity market are challenging the perception of it being a reliable hedge similar to gold.<\/p>\n
Led by Nikolaos Panigirtzoglou, the analysts noted that the ongoing rise in gold prices \u2014 now above $3,100 per ounce \u2014 reflects an intensifying preference for gold within the \u201cdebasement trade.\u201d This investment strategy focuses on assets like gold and Bitcoin as protection against inflation, high debt levels, and weakening fiat currencies. However, Bitcoin has struggled to keep pace this year, lagging behind due to its historically higher volatility and a strong performance at the end of 2024.<\/p>\n
Moreover, data shows that spot Bitcoin ETFs have experienced outflows over the past two months, while gold ETFs have seen continued inflows. This pattern suggests that private investors are increasingly favoring gold, particularly during February and March. Additionally, Bitcoin futures have turned negative since mid-January, whereas gold futures have remained steady. Analysts believe that the recent surge in gold buying is driven primarily by private investors and central banks rather than speculative traders.<\/p>\n