Market Insight: Does Bitcoin, like Gold, protect against a dollar crash? Don't count on it
The world's largest cryptocurrency is often referred to as digital gold. Nevertheless, Bitcoin hardly benefits from the dismantling of the US currency, says Jakob Blume.
The US bond market saw a historic intervention, which brought Bitcoin back into investors' focus. US Treasury Secretary Scott Bessent announced in mid-August that he would double buybacks of long-term US government bonds, financing this through short-term T-Bills. As a result, Bitcoin's price rose to $80,000, a 25% increase, with some analysts attributing this to a "debasement trade", betting on the dollar's decline.
However, economist Robin Brooks warns that Bitcoin may not protect against dollar depreciation like gold, citing its correlation with tech stocks and connection to the traditional financial system through stablecoins.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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