Bitcoin bulls weigh in as the cryptocurrency stalls amid a global market rally

Bitcoin Bulls Defend the Asset as Gold and Equities Outperform

Bitcoin (BTC $87,780.36) is struggling to live up to its narratives, including serving as an inflation hedge or a safe haven amid global uncertainty. While gold has surged more than 80% during this period of high inflation, geopolitical tension, and interest rate uncertainty, Bitcoin has fallen 14% year over year.

This divergence raises the question: why buy Bitcoin when precious metals and equities are delivering stronger returns? CoinDesk spoke to a group of seasoned Bitcoin advocates, who offer several explanations.

Comfort in the Known
Jessy Gilger, senior advisor at Gannett Wealth Advisors, argues that gold’s rally reflects investor “muscle memory.” “Institutions retreat to what they know during periods of fear,” Gilger said. “Bitcoin has been technically steady for over fifteen years. Eventually, as the market recognizes digital scarcity is more efficient than physical gold, Bitcoin should catch up.”

Transfer of Ownership
Mark Connors, CIO at Risk Dimensions, emphasizes supply dynamics. “Zooming in shows Bitcoin isn’t failing—it’s a supply distribution event,” he said. Institutional ETF inflows are absorbing early-adopter supply, creating a transfer of ownership rather than a lack of demand.

A Tech Stock Phenomenon
Charlie Morris, CIO at ByteTree, notes Bitcoin’s correlation with internet stocks. “Gold is the reserve asset for the real world; Bitcoin is for the digital world. Today’s struggles mirror tech stock behavior, not a failure of Bitcoin itself.”

Delayed Rotation
Peter Lane, CEO of Jacobi Asset Management, sees a delayed adoption curve. “Mass-market comfort with precious metals remains strong. Bitcoin hasn’t earned that trust yet, but a rotation into BTC could occur once investors seek alternatives to traditional hedges.”

New Demand Drivers Needed
Anthony Pompliano, CEO of ProCap Financial, notes the macro environment is shifting. “With deflation looming, Bitcoin will need new demand sources to push prices higher. I remain optimistic but recognize the market is evolving.”

A Long-Term Inflation Solution
David Parkinson, CEO of Musquet and BTC Lightning advocate, rejects the “digital gold has failed” narrative. “Bitcoin’s fixed supply and network growth deliver outsized multi-year returns. It is emerging as the Internet’s native monetary asset—a permanent solution to inflation rather than a temporary hedge.”

Timing and Relative Value
Andre Dragosch of Bitwise highlights investor psychology. “Precious metals benefit from familiarity during uncertain times. Bitcoin is still perceived as risky, but its relative underpricing versus gold and the macro environment suggests upside potential in the coming months.”

Despite short-term underperformance, Bitcoin bulls argue that supply dynamics, investor behavior, and structural market factors point to eventual recovery and long-term outperformance.

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