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Bitcoin continues to slip against gold, testing the safe-haven trade as gold rallies on rate-cut expectations and geopolitical risk. Bitcoin has struggled to hold key psychological levels and remains sensitive to the same forces that tend to hit equities and other risk assets. If bitcoin is supposed to be digital gold, this is not the tape it is meant to win.
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Part of the drag on bitcoin lies in market positioning after a long stretch of leverage-led trading, with rebounds quickly met by profit-taking. Macro dynamics—volatile yields, a whipsawed dollar, and a cautious mood that favors preserving capital—have kept risk-taking subdued, a pattern that typically benefits gold.
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David Miller, chief investment officer at Catalyst Funds, notes that while bitcoin has had a strong year, it is not digital gold. He argues that gold already serves as a reserve asset for central banks, while bitcoin remains more of a retail play. What gold does that bitcoin definitely can’t is serve as an actual alternative reserve asset to a currency, Miller said, adding that Bitcoin is really a retail play, whereas gold is very much institutional.
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In summary, the evolving macro backdrop continues to favor traditional safe havens, challenging the notion that bitcoin can consistently outperform gold in this regime. Investors are weighing the implications for portfolio diversification as the debate over digital gold versus gold as a reserve asset persists.
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