Bitcoin vs. Gold: Treasury Yields Surge to Spark Safe-Haven Battle

Gold ETFs have amassed $100 billion in assets, compared to Bitcoin’s $44 billion. As U.S. Treasury yields climb towards 5.15%, a level historically linked to risk aversion, gold might outperform Bitcoin as a safe haven, at least in the short term. However, if yields increase further, this could benefit gold’s traditional role in economic uncertainty. Ethereum analysts are analyzing how well Bitcoin holds up against macroeconomic shifts. While Bitcoin trades near $112,000, Bloomberg Intelligence strategist Mike McGlone notes that rising yields might favor gold. He suggests that although Bitcoin could still experience growth independently, it’s possible that the rise in U.S. Treasury yield will contribute to a greater preference for gold as investors seek a stable asset during uncertain economic times. This view contrasts with venture capitalist Tim Draper who recently dismissed gold, stating that Bitcoin is better suited for liquidity and long-term growth. While investors are debating whether Bitcoin will decouple from traditional markets or remain tied to risk sentiment, author Robert Kiyosaki points out that Bitcoin’s limited supply of 21 million offers a distinct advantage over gold which can be mined indefinitely. He believes Bitcoin could reach $250,000 by late 2025 due to its scarcity and increasing adoption. This debate is particularly interesting in light of the recent surge in Bitcoin ETFs; these have garnered $44.53 billion in inflows since their launch, closing the gap with gold ETFs which hold $100 billion. The growing interest for Bitcoin suggests growing acceptance within the market, while macroeconomic headwinds could potentially test its resilience. Bitcoin’s dual identity as a speculative tech asset and a mature store of value remains debated. Recent ETF inflows suggest increasing acceptance but the outcome remains unclear.