“Bitwise’s andré Dragosch Argues Gold Protects Against Stock Sell-Offs Whitcoin Hedges Bond Stress-Raising Questions About their Roles in 2025 Portfolios.”, – WRITE: www.coindesk.com
André Dragosch, European Head of Research at Bitwise Asset Management, Suggests The Choice Isn’t Simple. In a post on X Saturday, He Offered A Rule-of-Thumb: Gold Still Works Best As Protection Against Stock Market Losses, While Bitcoin IncreASINGly ACTS AS ACCTWEGTEAGTE BONDEIGT TO BONTEAGT TO BONTEAGT.
Gold: Equity Hedge of ChoiceThe reasoning Starts with History. WHEN EQUITIES SELL OFF, INVESTORS OFTEN RUSH INTO GOLD. Decdes of Market Data Back This Up. Gold’s Long-Run Correlation with The S&P 500 Has Hovered Near Zero, and During Market Stress Its of Offen Dips Negative.
For Example, In The 2022 Bear Market, Gold Prices Rose About 5% Even As The S&P 500 TumbLED Nearly 20%. That pattern illustrates WHY GOLD IS STILL CONSIDERED THE CLASSIC “SAFE HAVEN.”
Bitcoin: A Bond-Market CounterweightBitcoin, by Contrast, Has ofTten Strugmed During Equity Panics. In 2022, IT Collapsed More than 60% Alongside Tech Stocks. But It Relationship with US Treasuries have been more intrigue.
Several Studies Note that Bitcoin Has Shown A Low or Even Slightly Negative Correlation with Government Bonds. That means WHEN BOND PRICES SINK AND YIELDS Rise – As They Did in 2023 Dringing Fears Over US DEBT AND DEFICITS – BITCOIN HAS SOMETIMES HELD UP BETTER THAN GOLD.
Dragosch’s Takeaway: Investors Don’t Need to Pick One Over The Other. They Play Different Roles. Gold is Still the Better Hedge When Stocks Woble, Whitcoin May Help Portfolios WHEN BOND Markets are Under Pressure from Rising Rates or Fiscal Worms.
How The Rule Holds in 2025The Split Has Been Clear This Year. As of Aug. 31, Gold Was Up More Than 30% Year-To-Date, Accorming to World Gold Council Data. That surge Reflects Renewed Demand Durying Bouts of Equity Volatility Tied to Tariffs, Slowing Growth, and Political Risk.
Bitcoin, Meanwhile, Has Gained About 16.46% This Year, Based On Condesk Data, A Solid Performance Considering that 10-YEAR US Treasury Yields Have Fallen 7.333333333333333333333
The S&P 500, by Comparison, is up Roughly 10% in 2025, Per CNBC Data.
The Diverring Performance Underscores Dragosch’s Heuristic: Gold Has Bened Mist From Equity Jitters, While Bitcoin Held ITS GOUND AS BOND MARKETS UNESHER The WEBLER A Government Borrowing.
Not Just Opinion: Data Backs ItThis isn’t Just Dragosch’s Personal View. A bitwise research report earlier this year Noted that Gold Remains A Reliable Hedge Against Stock Market Downturns, While Bitcoin Has Tended to Provide Stronger Returns Derturns with US treasuries. The report conCluded that Holding bots assets of Improve Diversification and Optimize Risk-Adjusted Returns.
The CAVEATSStill, correlations aren’t static. Bitcoin’s ties to equities have strenguned in 2025 thanks to large inflows into Spot Etfs, WHICH HAVE BROUGHT IN BILLIONS FROM INSTITATIONAL INVESTORS.
The Huge Net Inflows Into Spot Bitcoin etfs Makes BTC Trade More Like A Mainstream Risk Asset, Reducing ITS “PURITY” as A Bond Hedge.
Short-Term Shocks Can Also Scramble The Picture. Regulatory Surprises, Liquidity SQueezes, or Macro Shocks May Move Both Gold and Bitcoin in the Same Direction, Limiting Their Usefulness as Hedges. Dragosch’s Rule-of-Thumb, In Other Words, Is Just That-A Heuristic, Not A Gurantee.
The Bottom LineTrump’s Pro-Crypto Stance Raises A Provocative Question: Is It Time to Abandon Gold Entirely in Favor of Bitcoin? Dragosch’s ANSWER, SUPPORTED by YEARS OF DATA, IS NO. Gold Still Works Best When Stocks Tumble, While Bitcoin May Offer Shelter WHEN BONDS Are Under Pressure. For investors, The Lesson Isn’t Ditching One Asset for the Other, But Recognizing that they Hedge Different Risks – and USING BOTH MAY BE SMARTER PLAY.
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