Gold and cryptocurrencies sometimes climb the same mountain, but trust me, their reasons for the ascent are poles apart.
Michael Cuggino, the brain behind Permanent Portfolio Funds, gives us the lowdown straight from the horses’ crypto mouths.
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Macroeconomic storms
Once upon a CNBC chat, Cuggino dropped the bomb that the idea of Bitcoin as “digital gold” is feeling a little dated.
While both might sparkle in the same financial sky now and then, Bitcoin’s more of a tech-sector diva, swaying wildly with liquidity cycles and speculative mood swings.
Gold? That’s a seasoned warhorse, weathering macroeconomic storms and geopolitical tempests.
Bitcoin’s teenage trading journey shows it dances in sync with tech giants like the Nasdaq 100 when central banks loosen the money taps and interest rates take a snooze.
Crank the financial screws, and watch both Bitcoin and tech stocks take a nosedive, like kids who just realized their candy stash was a mirage.
Central bank hoarding
We all know that gold’s strength is grounded in real dragons to slay, economic stress, geopolitical headaches, and central banks hoarding the shiny stuff.
Its rally isn’t a casino bet, and never was. It’s a fortress built on physical fundamentals, reinforced with riding the waves of low real interest rates and global uncertainty.
In the past years, gold’s shining brighter as traders hedge bets on a Federal Reserve caught in a policy quagmire.
Inflation’s sticky, growth’s cooling, and that cocktail usually cheers for gold, not the crypto party.
Safe haven?
Bitcoin, Cuggino thinks although tagged as “digital gold,” still walks the tightrope as a risk asset, shaken by liquidity tides and investor vibes rather than long-term macro wisdom.
It’s got the tech creds and the digital glow, yes, but it’s not quite earned the “safe haven” crown yet. Not with this volatility.
Either way, both assets can cozy up in portfolios, playing their parts in this sprawling financial Shakespeare.
Gold holds the shield when uncertainty rains, Bitcoin grabs the spotlight when tech innovation and digital finance takes center stage.
So, the real magic doesn’t lie in whether gold and crypto rise together, it’s why they’re rising that keeps the story worth the popcorn.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
📅 Published: November 4, 2025 • 🕓 Last updated: November 4, 2025
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