"Institutional investors accelerate 'debasement trade' as dollar value falls…clear preference for Bitcoin and gold"

As the US dollar continues to weaken, analysis suggests that the 'debasement trade' has taken root as a mainstream investment strategy even within traditional finance (TradFi).

According to crypto-focused media Cointelegraph on the 9th (local time), venture investor Anthony Pompliano said, "There is no one who will stop printing money now," adding, "The era of the dollar and bonds is ending, and the trend of attention shifting to Bitcoin and gold has become clear." He added, "It is now an indisputable trend," and "institutional investors have begun to adopt the 'debasement trade' as a strategy to protect themselves."

The 'debasement trade' is a strategy based on the premise that fiat currency purchasing power will decline long-term due to central bank monetary expansion, moving into stores of value such as physical assets (gold) or digital assets (Bitcoin). In fact, gold prices have risen by about 50% this year, and Bitcoin is trading around $121,612. Meanwhile, the US Dollar Index (DXY) has fallen about 12% from its January peak (110), dropping to a three-year low of 96.3 in mid-September before slightly rebounding in October.

Jeff Park, Chief Investment Officer (CIO) of Procap BTC, said, "Now even wealth managers and financial planners are considering increasing Bitcoin allocations within portfolios."

Matt Hougan, Chief Investment Officer (CIO) of Bitwise, described the debasement trade as "like the 'dark matter' of finance," explaining, "It is an invisible force that, while not directly seen, has a significant impact on the pricing of all assets."

Brian Cubellis, Head of Strategy at Onramp Bitcoin, said, "With fiscal deficits accumulating and debt surging, and accommodative monetary policy suppressing real interest rates, investors are seeking assets whose value will not be diluted," adding, "As a result, the flow of capital into gold and Bitcoin is becoming pronounced."

Enrique Ho, Chief Financial Officer (CFO) of Blink Wallet, said, "Bitcoin is not simply digital gold," evaluating it as "the purest form of capital preservation due to its fixed issuance, transparent supply structure, and trustless verification system."