Bitcoin News Today: Experts Split: Gold's Legacy vs. Bitcoin's Future in the Debasement Trade

Gold and Bitcoin surged to record highs on October 10, 2025, as investors flocked to hard assets amid inflation fears, weakening U.S. dollar dynamics, and rising global debtGold and Bitcoin Surge as Hedges Against Inflation and …^[1]. Both markets are increasingly seen as part of a "debasement trade," where capital flows into scarce, inflation-resistant assets as fiat currencies erode in value. Bitcoin, often dubbed "digital gold," saw renewed demand alongside physical gold, with its price briefly testing $125,000 before retreating. Meanwhile, gold prices surpassed $4,100 per ounce, driven by central bank purchases and geopolitical uncertaintyBTC–Gold Correlation Hits New High as Both Assets Draw Investors^[4].

The correlation between Bitcoin and gold has strengthened significantly, with the BTC-gold correlation coefficient rising above 0.85 in 2025-up from -0.8 in 2021 and nearing the all-time high of 0.9 seen in 2024BTC–Gold Correlation Hits New High as Both Assets Draw Investors^[4]. Analysts attribute this convergence to shared attributes: both assets offer scarcity (Bitcoin's 21 million supply cap mirrors gold's limited mineable output) and serve as hedges against monetary debasementBitcoin continues to match gold as inflation hedge^[6]. "Bitcoin's trajectory increasingly echoes gold's historical evolution from currency to store of value," said Andrei Grachev, managing partner at DWF LabsBTC–Gold Correlation Hits New High as Both Assets Draw Investors^[4].

However, gold outperformed Bitcoin in 2025, with the SPDR Gold Trust (GLD) up over 40% year-to-date compared to Bitcoin's 19% gainGold Crushes Bitcoin As 2025's True Inflation Hedge - Benzinga^[3]. Central banks, particularly in China, India, and Russia, have accelerated gold purchases, accumulating over 1,000 metric tons annually since 2022Gold and Bitcoin Decouple. What's Driving the …^[5]. This shift reflects a broader diversification away from dollar-denominated reserves, spurred by geopolitical tensions and sanctions concerns. In contrast, Bitcoin's institutional adoption, while growing, remains fragmented, with some investors viewing it as more correlated to risk-on assets like the Nasdaq than traditional safe havensGold Surges Ahead of Bitcoin, But For How Long? - Forbes^[7].

The surge in hard assets was accompanied by extreme volatility in crypto markets. On October 10, over $7.5 billion in Bitcoin positions were liquidated-a record since its 2025 peak-amid sharp price swings triggered by tariff announcements and macroeconomic uncertaintyGold and Bitcoin Surge as Hedges Against Inflation and …^[1]. Retail investors bore the brunt of the losses, highlighting the risks of leveraged trading in highly volatile markets. "This event may ultimately stabilize the ecosystem by weeding out excessive speculation," one analyst noted, though the immediate impact underscored Bitcoin's nascent role as a safe havenGold and Bitcoin Surge as Hedges Against Inflation and …^[1].

Experts remain divided on which asset is the superior inflation hedge. Ray Dalio, founder of Bridgewater Associates, recommended a 15% portfolio allocation to either gold or Bitcoin to combat fiat currency risks, though he favored gold as the "purest play" on value preservationRay Dalio Says 15% In Bitcoin Or Gold May Be Essential As Fiat ...^[9]. Others, like BlackRock's Rick Rieder, acknowledged Bitcoin's potential as a hedge but cautioned that its volatility and correlation with equities make it a riskier bet than goldGold Crushes Bitcoin As 2025's True Inflation Hedge - Benzinga^[3]. Meanwhile, Bitcoin proponents highlight its structural advantages, including programmable scarcity and borderless utility, arguing it could outperform gold over the long termBitcoin continues to match gold as inflation hedge^[6].

Looking ahead, the Federal Reserve's accommodative stance and persistent global debt levels are expected to sustain demand for hard assets. If rate cuts continue, Bitcoin could test $135,000 by early 2026, according to forecastsBitcoin continues to match gold as inflation hedge^[6]. Yet gold's millennia-old role as a store of value-and its recent outperformance-suggest it will remain a cornerstone of inflation-hedging portfolios for the foreseeable future. As markets navigate an era of monetary uncertainty, the debate between "digital gold" and its metallic counterpart will likely intensify, reflecting diverging views on the future of value preservation.