While Bitcoin continues to draw attention as a high-growth asset, its reputation as a safe haven during turbulent markets is being called into question.
Bloomberg Intelligence’s Athanasios Psarofagis believes gold remains the more reliable performer when stocks slide.
Speaking on Bloomberg TV’s “ETF IQ,” Psarofagis noted that gold typically holds its ground during S&P 500 sell-offs, whereas Bitcoin tends to lose value alongside equities.
In bullish periods, however, the cryptocurrency can far outperform gold, offering investors significantly greater upside potential.
“Bitcoin has the kind of explosive returns that gold can’t match when markets are strong,” he said. “But when sentiment turns negative, gold shows more resilience.” According to Psarofagis, the long-standing narrative of Bitcoin as a hedge against inflation or a general market shield is overstated.
Instead, he described the asset as functioning more like a hedge against expansion in the global money supply.
Even so, gold is not flawless in its defensive role, and both assets carry volatility. Psarofagis pointed out that Bitcoin remains the riskier of the two, partly because its true identity in the financial world is still debated — whether it should be seen as a currency, a store of value, or simply a speculative instrument.
One advantage Bitcoin does have, he acknowledged, is its fixed supply of 21 million coins, which cannot be inflated or duplicated by governments.
This scarcity has helped drive its value in upward markets, even though it has failed to consistently protect investors during major equity downturns, particularly when technology stocks have been hit the hardest.
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Source: https://coindoo.com/gold-beats-bitcoin-in-bear-markets-analyst-claims/