Bitcoin Surges 2.6% As Investors Seek Inflation Hedge

John D’Agostino, Coinbase’s head of institutional strategy, has highlighted that investors who missed out on gold’s significant rally may now be turning their attention to Bitcoin (BTC) as an alternative hedge against inflation. In a recent interview on CNBC Squawk Box, D’Agostino emphasized that Bitcoin shares several key characteristics with gold, making it an attractive asset for those seeking to protect their investments during times of market turmoil and inflation.

D’Agostino noted that Bitcoin’s scarcity, immutability, non-sovereign nature, and portability are similar to gold’s attributes, which have traditionally made it a favored asset for hedging against inflation. He mentioned that some traders, who had anticipated persistent inflation, had created a basket of various assets to hedge against it. In their analysis, Bitcoin consistently ranked among the top five assets for this purpose, alongside gold.

According to D’Agostino, the mining scarcity of Bitcoin, which increases in difficulty over time, further enhances its appeal as a hedge against inflation. He also pointed out that Bitcoin has historically performed well during market turmoil and inflationary conditions, making it a reliable asset for investors looking to diversify their portfolios.

D’Agostino’s comments come at a time when Bitcoin is trading at $93,146, reflecting a 2.6% increase in the last 24 hours. This price movement underscores the growing interest in Bitcoin as a potential hedge against inflation, especially for investors who may have missed out on the gold rally.