Bitcoin’s Price Behavior Raises Doubts About Gold Proxy Status

While some policymakers have considered Bitcoin a store of value, its recent price fluctuations suggest it’s more akin to high-beta tech stocks. A recent market outlook report from Swiss crypto bank Sygnum argues this trend, noting that despite expectations of Bitcoin acting as a digital gold proxy, it’s increasingly seen as the de facto market proxy for the entire crypto sector. This view is rooted in the fact that Bitcoin’s price primarily depends on its perceived value as a store of value asset rather than its technological applications on the network.