Discrepancy Between Gold and Bitcoin
According to Stephen Coltman, who leads macro strategies at the cryptocurrency exchange-traded product provider 21Shares, the trends in 2026 can be understood through two different buying patterns.
He noted that while gold’s recent surge over the past three years has been mainly fueled by central bank acquisitions, Bitcoin tends to be held more by individuals rather than financial institutions.
Coltman explained, “Physical gold now plays a much more strategic geopolitical role as the asset of choice for state actors who wish to accumulate wealth in a way that is protected from competing powers. This means that physical gold is traded more sensitively to deterioration in international relations.”
On the other hand, Bitcoin serves more as a lifeline for individuals who may find themselves unable to access traditional banking systems during crises. It can be especially valuable when local financial infrastructures fail.
He pointed out the serious implications of recent international conflicts, mentioning that shortly after hostilities escalated, exchanges in Dubai and Abu Dhabi shut down due to missile and drone threats from Iran. This underscored the critical importance of having constant access to assets during times of war or emergencies.
Coltman emphasized to Cointelegraph that the negative correlation between Bitcoin and gold suggests that investors should consider holding both to leverage the distinct advantages of each asset.
Recent macroeconomic and geopolitical events have driven gold prices to record highs, reaching nearly $5,600 per ounce in January 2026. However, increased market volatility has seen its value drop to around $4,497 per ounce, sparking renewed discussions among analysts about gold’s effectiveness as a store of value and its future performance compared to Bitcoin.
Analysts Divided on Gold vs. Bitcoin
Some financial analysts believe Bitcoin may outshine gold in the next three years. Macroeconomist Lynn Alden suggested that “it’s usually a pendulum swing between the two. If gold goes up this much, the whole story of diminishing returns from cycle to cycle will also be erased in the next cycle.”
Conversely, former hedge fund manager Ray Dalio argues that although gold maintains its status as a reserve asset within the banking system, Bitcoin is unlikely to replace it as a store of value. He believes Bitcoin still behaves more like a high-risk asset, reflecting movements in tech stock values.
