Debasement Trade: Gold and Bitcoin Two long-term forces continue to underpin gold’s strength: - Central bank demand: After the U.S. froze Russia’s reserves in 2022, many central banks began diversifying away from the dollar, adding gold as a politically neutral store of value. - Debasement of fiat currencies: Persistent U.S. fiscal deficits and monetary expansion fuel concerns over the dollar’s long-term purchasing power, pushing investors toward scarce assets. However, Bitcoin hasn’t followed. It’s been largely flat while gold goes vertical. This may because Bitcoin remains partially risk-on assets, still tied to broader liquidity and sentiment. Eventually, if this move is truly about fiat debasement, Bitcoin should catch up.(BloFin Academy)