André Dragosch from Bitwise Asset Management suggests that gold and bitcoin serve different roles in investment portfolios. Gold is traditionally viewed as a hedge against falling equity markets, having shown a negative correlation with the S&P 500 during bear markets. For instance, gold prices increased during the 2022 equity sell-off. In contrast, bitcoin acts as a countermeasure against bond market stresses, often maintaining its value when U.S. Treasury yields rise. As of August 31, 2025, gold's year-to-date results show an increase of over 30%, while bitcoin has appreciated by about 15%. This performance highlights their distinct roles in response to market volatility, particularly in the context of Trump’s pro-crypto administration fostering interest in digital assets. Dragosch advises investors should not choose one over the other but rather utilize both as their functions complement each other, protecting against different risks. Acknowledging the changing dynamics, investors need to be aware of correlations that can shift based on market conditions and regulatory changes.

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