Bitcoin Is A 'More Liquid And Higher Volatility Version Of Gold': Bernstein

Bitcoin BTC/USD is increasingly behaving like a high-volatility, liquid version of gold, according to Bernstein analysts.

What Happened: In a note to clients on Tuesday, the analysts wrote that despite falling roughly 26% amid ongoing tariff disruptions and geopolitical volatility, Bitcoin has performed better than expected in historical context—especially compared to past market shocks like COVID or rate hike cycles, which triggered 50–70% drawdowns.

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The asset’s resilience during recent global market stress signals a shift toward higher-quality capital and growing institutional adoption, making it a "more liquid and higher-volatility version of gold."

"Bitcoin on a time-scale is probabilistic gold," the note read. "It trades like the most accessible and liquid risk-market when equities are closed, acting as a weekend signal for investor sentiment."

Bernstein’s report suggests that while Bitcoin has not fully decoupled from traditional equities—and still correlates with risk-on assets—it is increasingly being treated as a long-term store of value.

The cryptocurrency’s market capitalization now approaches $2 trillion, still a fraction of gold's $20 trillion market, but it offers greater liquidity and twice the volatility.

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Why It Matters: Institutional adoption is driving this shift.

Spot Bitcoin ETFs have collectively seen inflows of around $770 million year-to-date despite recent price declines.

Additionally, large corporate holders such as Strategy Inc. MSTR are investing with longer-term horizons, with BTC now comprising significant portions of balance sheets across publicly traded firms.

"The ETF flows are still in positive territory and reflect higher-quality capital," the analysts noted, adding that nearly 10% of Bitcoin's total supply is now held in ETFs and corporate treasuries combined.

While macro headwinds like tariffs on China-based mining hardware could impact Bitcoin mining capacity in the short term, U.S. miners such as Riot RIOT, CleanSpark CLSK and Core Scientific CORZ are pivoting to AI infrastructure to diversify revenue streams and withstand geopolitical shocks.

Bernstein’s core thesis remains that Bitcoin's volatility, liquidity, and emerging role in institutional portfolios are cementing its evolution as a digital commodity asset—distinct from gold, but increasingly a peer in investor strategy.

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