Bitcoin Bulls Defend the Asset as Gold and Equities Outperform

Bitcoin (BTC $87,780.36) has struggled to meet expectations as an inflation hedge or safe-haven asset amid global uncertainty. While gold has surged more than 80% during periods of high inflation and geopolitical tension, Bitcoin has fallen 14% year over year.

This divergence raises a key question: why invest in Bitcoin when traditional assets are outperforming? Longtime Bitcoin advocates offer several perspectives.

Investor Familiarity
Jessy Gilger, senior advisor at Gannett Wealth Advisors, points to gold’s “muscle memory” appeal. “Institutions retreat to what they know in times of fear,” she said. “Bitcoin has been technically steady for over 15 years. Eventually, markets will recognize that digital scarcity is more efficient than physical gold, and Bitcoin should catch up.”

Supply Flow, Not Demand
Mark Connors, CIO at Risk Dimensions, emphasizes that Bitcoin’s weakness reflects a redistribution of supply rather than declining demand. “Institutional ETF inflows are absorbing a decade’s worth of early-adopter supply. This is a transfer of ownership, not a failure of interest.”

Tech-Like Behavior
Charlie Morris, CIO at ByteTree, highlights Bitcoin’s correlation with tech stocks. “Gold is for the real world; Bitcoin is for the digital world. Its recent performance mirrors tech stock behavior, not asset failure.”

Delayed Rotation
Peter Lane, CEO of Jacobi Asset Management, says investors gravitate toward familiar assets like gold and silver. “Bitcoin hasn’t earned that mass-market trust yet, but we may see a delayed rotation into BTC as confidence grows.”

Shifting Demand and Long-Term Potential
Anthony Pompliano (ProCap Financial) and David Parkinson (Musquet) note that while Bitcoin has been an inflation hedge, evolving macro conditions will require new demand drivers. Parkinson adds that Bitcoin’s fixed supply and network growth position it as the Internet’s native monetary asset—a permanent solution to inflation rather than a temporary hedge.

Relative Opportunity
Andre Dragosch (Bitwise) sees upside potential, noting Bitcoin remains undervalued relative to gold and global money supply.

Despite short-term underperformance, bulls argue that Bitcoin’s fundamentals, supply dynamics, and long-term positioning indicate strong recovery potential.