Bitcoin Matches Gold as a Hedge Against Inflation Despite Recent Drop

CryptoQuant CEO Ki Young Ju has stated that Bitcoin remains a hedge against inflation, despite its recent performance. Young Ju shared this take on X after Gold hit a new all-time high, continuing its positive momentum.

The crypto expert noted that Bitcoin-gold correlation remains very high, which is a positive sign. He wrote:

Gold Hits New High, Experts Think Bitcoin is Next

According to the data shared by Young Ju, the 180-day correlation between Bitcoin and Gold is significantly above 0.5. This shows how both asset performances have matched this year.

This is significant given the contrast in performance over the past week. Following the US President Donald Trump’s threat of further tariffs on China, Bitcoin crashed to $104,000 before recovering slightly. However, Gold rose to a new all-time high on Monday at  $4,079 per ounce.

Despite this recent divergence, analysts see similarities between Bitcoin and Gold. Many believe that Gold is only a frontrunner that shows the future trajectory of Bitcoin.

Historically, Gold and Bitcoin rarely rise together, with Gold usually rallying first. Macro analyst Rob Jones believes that is what is happening now. He noted that Bitcoin is shadowing Gold with a delay of approximately 60 days. Based on this projection, he predicted that the Bitcoin price could reach $156,599 by mid-December.

Bitwise Europe’s Head of Research, André Dragosch, also shared a similar sentiment. He observed that Bitcoin/Gold is signaling a risk-off stance, which makes BTC more attractive at the moment. Regarding the recent decline in Bitcoin, Dragosch stated that it was mechanical rather than due to fundamental reasons.

He said:

“Think it’s important to underscore that the sell-off was mechanical (liquidation-driven) rather than a full capitulation on fundamentals. Fundamentals — macro liquidity, supply scarcity, etc — continue to look very bullish.”

Milk Road on X also supports this take, noting that what happened last week was not a crash but a rest. It noted that the flash crash only flushed out the excess leverage in the market and is necessary in extended bull runs.

Bank of America Forecasts Gold to $5,000 Per Ounce by 2026

Interestingly, the TradFi market is bullish on Gold just as much as the crypto crowd is on Bitcoin. Bank of America researchers have raised their price outlook for Gold to $5,000 for 2026.

They wrote:

The bank cited the US policy framework as the reason behind this position. It noted the fiscal deficits, rising debts, and the calls for further rate cuts as factors supporting the thesis on Gold. However, it noted that demand for Gold must increase by 28% for it to rally to $6,000 per ounce.

Bank of America is not the only one with such a high outlook for Gold at the moment. Société Générale also has the same price targets. Other financial institutions have also raised theirs in recent times. Goldman Sachs raised its outlook to $4,900 by December 2026. Deutsche Bank expects $4,300 for 2026 Q4, while UBS sees $4,200 in the coming months.