Traditional Finance Embraces “Debasement Trade” Amid Currency Devaluation

Arthur Hayes, co-founder of BitMEX, asserts that traditional finance is shifting focus to the “debasement trade,” involving investments in gold and cryptocurrencies to hedge against currency devaluation.

This shift underscores the growing recognition of assets like Bitcoin as inflation hedges, reflecting a significant realignment in traditional financial portfolio strategies.

Bitcoin and Gold Lead in TradFi’s Inflation Strategies

Arthur Hayes stated that the “debasement trade” narrative has become dominant in traditional finance. He emphasized that institutions are now focusing on assets such as Bitcoin and gold to protect against currency devaluation. According to Hayes, this recognition was long overdue, and it indicates a major shift in traditional financial circles. Mainstream bankers, Hayes states, are actively engaging with multi-asset portfolios that hedge against inflation.

Bitcoin’s performance amidst recent market conditions highlights its role as a key hedge against currency debasement. Hayes pointed out that, due to its limited supply, Bitcoin has become a premier asset for those anticipating ongoing inflationary pressures. “Bitcoin is the best performing asset when you think about currency debasement ever,” said Hayes.

The reactions from the financial community indicate a robust confidence in Bitcoin’s inflationary hedge capabilities. Prominent figures underscore the asset’s growth potential as a response tactic to fiat devaluation. Hayes’s prediction of Bitcoin reaching new heights underscores the broadening acceptance of cryptocurrencies as legitimate tradable assets.

Bitcoin Price Soars as Institutional Inclusion Grows

Did you know? In 2025, institutional portfolios comprising Bitcoin rose significantly from previous years, reflecting an industry-wide shift towards incorporating digital coins as effective hedges against inflation.

As of October 9, 2025, Bitcoin (BTC) is priced at $122,060.33, with a market cap of 2,432,886,233,521.83. Bitcoin accounts for 58.41% of the crypto market’s dominance. In the last 24 hours, the trading volume stood at 63,843,574,050.86, marking a 19.06% decrease. Over 90 days, Bitcoin registered a 4.76% price alteration. CoinMarketCap.

Insights from the Coincu research team suggest that embracing the “debasement trade” within traditional portfolios could further solidify Bitcoin as a robust inflation hedge while sparking ongoing discussions regarding regulatory frameworks in institutional crypto investment. Analytical trends indicate market readiness for broader blockchain technology integration.