Bitwise’s Head of Europe: “Bitcoin (BTC) is an aggressive asset, gold a defensive asset”

An analysis has found that Bitcoin (BTC) and gold are assets that play different roles depending on the market cycle. The explanation is that in bull markets Bitcoin acts as a return-seeking vehicle, while in bear markets gold serves as a defensive tool with a different risk profile.

According to Decrypt, a media outlet specializing in virtual assets (cryptocurrencies), on the 6th (local time) Bradley Duke, Head of Europe at Bitwise, attended the Digital Asset Forum in London and commented on the differing characteristics of Bitcoin and gold. He said it is not appropriate to interpret the two assets solely through the same “digital gold” framework.

Duke explained, “When markets fall, gold acts as a buffer,” adding that “the greater the uncertainty, the more gold has functioned as a store of value.” He continued, “By contrast, when the market enters an uptrend, Bitcoin offers far greater upside potential.”

He distinguished Bitcoin as an “aggressive asset” and gold as a “defensive asset.” Bitcoin offers strong return opportunities in growth and risk-on environments, whereas gold is an asset focused on mitigating downside risk during periods of economic uncertainty and heightened market volatility.

He also emphasized that the two assets are not substitutes for one another, but rather perform different functions within a portfolio. From his perspective, Bitcoin can be used alongside gold—Bitcoin as a long-term growth asset and gold as a stabilizing asset positioned against macro risks.

Duke said that even as volatility has recently increased simultaneously across crypto and precious-metals markets, investors need to approach these assets by differentiating their characteristics. He said, “One focuses on upside potential, while the other focuses on protection from downside risk driven by uncertainty.”