According to Fixygen, Bitcoin’s rise above $80,000 in August was accompanied by behavior unusual for a classic risk asset.
The cryptocurrency rose in value alongside gold following the U.S. Treasury’s decision to increase purchases of long-term Treasury bonds and amid investor concerns about the debt burden and the long-term value of the dollar.
The market is once again discussing the “debasement trade”—the purchase of scarce assets in anticipation of a decline in the purchasing power of currencies.
However, it is still difficult to call Bitcoin a full-fledged equivalent of gold.
On August 31, amid growing expectations of a Fed rate hike, BTC remained around $78,500, while gold was trading at around $4,450 per ounce. Rising bond yields put pressure on both assets.
The difference lies in volatility. Gold remains a traditional reserve asset for central banks and institutional investors, while Bitcoin continues to experience significantly steeper declines.
Therefore, it is more accurate to say that Bitcoin is partially taking on the characteristics of an anti-dollar asset, but it does not yet replace gold.
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