Analysis suggests bitcoin is increasingly competing with gold as a store of value, with a 26% relative undervaluation.
Bitcoin’s classification as a risk asset may be evolving as it competes with gold for macro allocation, according to new analysis. The digital asset shares key traits with gold, including scarcity and political neutrality, positioning it as a hedge against inflation and fiat currency devaluation. A 26% relative undervaluation against gold highlights its potential upside in this role.
Both assets operate outside traditional fiat systems and respond to inflation expectations and real yields. While gold has long been the dominant store of value, bitcoin’s growing adoption among institutional investors signals a structural shift in market perception. The analysis challenges the narrative of bitcoin as merely a speculative risk asset.
The comparison underscores bitcoin’s maturation as a monetary asset, though its volatility remains a key differentiator. Market participants are increasingly weighing its long-term potential alongside gold in diversified portfolios.