Bitcoin is being repositioned as a “financial infrastructure” in the age of AI and institutional money, making the question no longer “Bitcoin or gold,” but rather “how much to allocate to each.”
While both Bitcoin and gold experienced significant volatility, BTC prices recovered and gold approached the $5,000/ounce mark. Simultaneously, institutional perspectives and the impact of AI are changing how the market assesses the "store of value" Vai of these two assets.
- BTC recovered to $70,681, while gold rose to $4,966.26 per ounce, indicating safe-haven demand and "buy on dips".
- Cathie Wood argues that AI “agentic commerce” could transform large blockchains into core financial infrastructure, solidifying Bitcoin's Vai in the portfolio.
- on-chain data shows weakening retail sales, but Bitcoin's dominance has risen to around 59%, implying a return of funds to BTC.
Bitcoin and gold both rose in price as investors sought safe haven assets.
BTC rose 3.03% to $70,681, while gold increased 2.03% to $4,966.26 per ounce, reflecting simultaneous demand for both traditional "safe haven" assets and "digital gold".
After a period of decline, Bitcoin is showing signs of recovery as investors "buy on dips," maintaining the narrative of Bitcoin as "digital gold" amidst uncertainty. Conversely, gold is also showing strength as its price approaches the $5,000/ounce mark, indicating that demand for traditional safe-haven assets remains high.
The parallel developments in the two markets highlight a fact: the "Bitcoin vs. Gold" debate is not based solely on short-term price fluctuations, but is also influenced by the macroeconomic context, risk appetite, and institutional asset allocation trends.
Gold prices are referenced from GoldPrice.org .
Cathie Wood emphasized that AI is transforming blockchain into financial infrastructure.
Cathie Wood argues that "agentic commerce" (AI-driven trading) will make blockchains like Bitcoin the core infrastructure, thereby elevating BTC Vai from a speculative asset to a central component of modern portfolios.
From this perspective, as AI systems can execute transactions automatically, the infrastructure for payments, custody, and authentication will become more critical. Wood cites large networks like Bitcoin, Ethereum, and Solana as potential beneficiaries of the “agent AI” trend that uses blockchain to transfer value.
The implication for investors is that the focus may shift to leading networks, which offer greater security, liquidation , and network effects. This further reinforces the argument that Bitcoin is increasingly becoming a long-term component of portfolios, rather than just a short-term trading instrument.
"Bitcoin is leading the way. It's the safest of all cryptocurrencies."
– Cathie Wood, ARK Invest, YouTube interview
Macroeconomic pressures may cause volatility, but they also demonstrate that Bitcoin has become a global financial asset.
Rising Japanese interest rates, tightening US liquidation , and portfolio rebalancing are putting pressure on crypto, but these factors reflect Bitcoin's closer alignment with global Capital flows, not necessarily an "internal recession."
Factors such as rising Capital costs and declining liquidation typically cause significant volatility in risky assets. However, Wood argues that the current volatility stems from shifts in global Capital flows, as investors adjust their allocations across various asset classes.
The backdrop of slowing growth in China and concerns about falling inflation could weaken gold's momentum at some point, thereby opening the possibility of reallocation to Bitcoin. This interpretation places Bitcoin within the broader macroeconomic allocation "game," rather than directly competing with gold as a standalone alternative.
Notably, the relationship between gold and Bitcoin is described as evolving: they may compete at times, but can also complement each other within the portfolio.
Gold and Bitcoin can be paired together in a portfolio, rather than choosing one over the other.
Wood argues that organizations tend to use gold for stability and Bitcoin for growth, shifting the question from "gold or Bitcoin" to "the proportion of each asset".
Gold is often XEM as a hedge against crises and increased uncertainty. Bitcoin, as a "digital counterweight" to gold, is highlighted for its growth potential and programmability, although it comes with greater volatility.
From this perspective, the two assets can "go together": gold Vai as a volatility reducer for portfolios, while Bitcoin provides an "upside" advantage as financial innovation trends and tech money flows surge.
"We wouldn't be surprised if gold continues to fall, benefiting Bitcoin."
– Cathie Wood, ARK Invest
"Gold typically precedes a major Bitcoin price fluctuation."
– Cathie Wood, ARK Invest
Bitcoin market dynamics show weak retail sales, but money flow could return to BTC.
Glassnode data shows a decrease in active users, but Bitcoin's dominance has increased to around 59%, suggesting investors are reducing risk from altcoins and returning to BTC.
A decline in user activity is often interpreted as weaker retail demand, especially when the market requires broad participation to sustain short-term gains. This is a signal to watch out for as it can impact price dynamics during periods of volatility.
On the other hand, Bitcoin's dominance level rising to around 59% suggests that Capital flows are increasingly favoring "safer assets in crypto," rather than spreading across higher-risk altcoins. (Refer to the BTC dominance index at TradingView (BTC)) .
Wood also argues that the traditional four-year cycle (a sharp rise followed by a deep decline) is gradually breaking down, and the current downturn may be one of the mildest corrections in history, in her opinion.
Bitcoin's long-term structure may be changing thanks to institutional money inflows.
As institutions become more involved, extreme volatility may decrease, and Bitcoin's long-term market structure could shift toward greater "maturity."
The original text emphasizes two key points: (1) institutional adoption can reduce excessive volatility, and (2) macroeconomic pressures such as rising Japanese interest rates or tightening US liquidation are impacting Bitcoin in a similar way to other financial assets.
If Bitcoin is increasingly traded and held as part of a macro portfolio, the market may see corrections linked to liquidation cycles and rebalancing, rather than solely dependent on the “halving” narrative or FOMO sentiment. However, short-term movements may still be volatile due to its high sensitivity to Capital flows.
Frequently Asked Questions
Which asset is currently experiencing stronger growth: Bitcoin or gold?
At the time mentioned, Bitcoin was up 3.03% to $70,681 in 24 hours, while gold was up 2.03% to $4,966.26 per ounce. Both were rising, but BTC was gaining faster in this timeframe.
What is "Agentic commerce" and how is it related to Bitcoin?
"Agentic commerce" refers to a context where AI can independently execute transactions. According to Cathie Wood, this could make large blockchains like Bitcoin crucial financial infrastructure for transferring value, increasing the "essential" nature of BTC within the system.
What does on-chain data say about retail demand for Bitcoin?
According to the Glassnode data mentioned, user activity has decreased, which is generally interpreted as weaker participation from retail investors. This is a signal contrary to the short-term upward trend.
Why is an increase in Bitcoin's dominance important?
A dominance level rising to around 59% could indicate a flow of money away from riskier altcoins and back into Bitcoin. This typically reflects a "defensive" sentiment within the cryptocurrency market.
