- Bernstein analyst says Bitcoin is more attractive than gold.
- Gautam Chhugani explained why in a research note today.
- Bitcoin is currently down about 10% versus its year-to-date high.
Gold has historically been a strong performer during recessions, but a Bernstein analyst argues that Bitcoin may now offer a superior investment opportunity.
Bitcoin’s track record versus gold
Gautam Chhugani views Bitcoin as the modern “safe haven,” noting that since 2018 it has delivered roughly five times the performance of gold. While Bitcoin’s current annualized inflation rate of about 1.8% is similar to gold’s, Chhugani highlighted an important structural difference: Bitcoin’s inflation rate halves approximately every four years.
The next scheduled halving of Bitcoin’s supply is expected in May 2024. Historically, halvings have coincided with significant price appreciation, a pattern investors often cite when evaluating future upside.
Last week, billionaire hedge fund manager Paul Tudor Jones also said Bitcoin looks more attractive than stocks in the current macro environment, echoing a broader narrative that allocators are weighing crypto as an alternative store of value.
Spot Bitcoin ETF could unlock institutional demand
Chhugani believes continued recession fears could redirect more capital into Bitcoin. He argues the cryptocurrency is at an early stage of institutional adoption, and that approval of a U.S. spot Bitcoin ETF by the Securities & Exchange Commission would trigger substantially larger inflows.
Compared with gold’s market capitalization, Bitcoin still represents a small fraction—well under 5%—leaving considerable room for potential growth if institutions increase exposure.
This morning Bitcoin jumped after a report claimed the regulator had approved an iShares spot Bitcoin ETF. That report later proved false, which caused a sharp pullback and left Bitcoin trading near the $28,000 level, roughly 10% below its year-to-date high.