Gold and Bitcoin: Separate Hedges in 2025 Economy

In 2025, gold remains a hedge against stock market declines, whereas Bitcoin counters bond market pressure, impacted by rising U.S. Treasury yields, according to Bitwise Asset Management’s André Dragosch.

Analysts from Bitwise Asset Management emphasize gold and Bitcoin’s shifting hedging roles. With gold as a traditional safe haven against equities, and Bitcoin adapting to counter bond market fluctuations amid soaring U.S. Treasury yields.

André Dragosch, European Head of Research at Bitwise, leads this analysis, highlighting gold’s continued role against stock market volatility, while Bitcoin increasingly hedges bond market pressure. Institutional portfolios reflect this trend shift.

“Gold still works best as protection against stock market losses, while Bitcoin increasingly acts as a counterweight to bond market stress.” — André Dragosch, European Head of Research, Bitwise Asset Management

The dual hedge approach affects portfolio allocations, with increased institutional investment in gold and Bitcoin. Investors benefit from diversified risk mitigation strategies, adapting to volatility across stock and bond markets simultaneously.

The financial landscape underscores Bitcoin’s rising institutional adoption, with 59% portfolio inclusion, reflecting confidence in its ability to offset bond market stress. Gold remains a mainstay for equity-based risk aversion.

Hybrid investment approaches suggest enhanced risk-adjusted returns. Analysts recommend a strategic balance involving both Bitcoin and gold, leveraging their complementary hedging properties in diversified portfolios.

Insights indicate potential benefits from incorporating both assets, offering dynamic adjustments amid regulatory developments and macroeconomic trends. Such diversified strategies may provide sustained resilience in volatile market conditions.