Bitcoin is failing its most important test, and an 11-month slide proves the “store of value” is broken right now
Despite dollar volatility, Bitcoin has experienced an 11-month decline when measured against gold, questioning its viability as a store of value.Summary
The article argues that Bitcoin's performance as a store of value is weakening, as evidenced by its 45% decline against gold over the past 11 months. While Bitcoin's dollar price has seen volatility, including a significant swing from $124,700 to the $80,000s, its underperformance relative to gold has been consistent. This trend suggests that Bitcoin's value isn't holding up against a traditional safe haven asset, even as gold benefits from geopolitical uncertainty and softening real-rate expectations. The author emphasizes that cross-asset benchmarking, particularly against gold, provides a more accurate assessment of Bitcoin's performance than solely focusing on its dollar price. Institutional investors evaluate Bitcoin not just on its rebound from selloffs, but on its performance relative to other assets in their portfolios. For Bitcoin to regain its 'store of value' status, it needs to demonstrate strength against gold, requiring a shift in liquidity conditions and reduced demand for safe havens.
(Source：CryptoSlate)