Bernstein thinks bitcoin could eventually replace the role of gold. “We expect Bitcoin to emerge as the new-age premier ‘store of value’ asset eventually replacing Gold over the next decade, and becoming a permanent part of institutional multi-asset allocation and a standard for corporate treasury management,” analyst Gautam Chhugani wrote in a note Thursday. The comments come after bitcoin hit $100,000 for the first time, adding to its monster 2024 gains. Year to date, the digital currency is up 141%. A chunk of those gains have come since the Nov. 5 U.S. election, with investors betting the incoming Trump administration will be more friendly to the crypto industry. Bernstein sees bitcoin reaching $200,000 in late 2025. Chhugani is not the only analyst who thinks bitcoin can play a bigger role in the economy. D.A. Davidson’s Gil Luria wrote that he sees “Bitcoin’s main current application as a store of value — an appreciating, low-correlation asset that replaces gold as a hedge against a decline in economic stability.” Although bitcoin prices currently show a low correlation to a rise in inflation as well as a high association to other risk assets — unlike gold, which is viewed as a safe-haven asset and an inflation hedge — Luria believes bitcoin is “mostly driven by adoption,” which he cites as being “loosely linked” to what drives the markets. Employment, regulation, tax policy and globalization were some of the factors the analyst noted. To be sure, there is still a long path ahead before bitcoin will be widely accepted as a medium of exchange and unit of account, said Luria.
