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Here's what bitcoin bulls are saying as price remains stuck during global rally

2026/01/25 00:26
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Here's what bitcoin bulls are saying as price remains stuck during global rally

It's about a lot more than "zooming out." Supply overhangs and investor "muscle memory" regarding gold help explain bitcoin's poor absolute and relative performance.

By Helene Braun, James Van Straten, Krisztian Sandor|Edited by Stephen Alpher
Jan 24, 2026, 4:26 p.m.
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Bitcoin bulls mull poor price action (Bruce Mars/Unsplash)

What to know:

  • Bitcoin has failed so far to act as an inflation hedge or safe-haven asset, lagging badly behind gold, which has surged amid high inflation, wars, and interest rate uncertainty.
  • Crypto advocates argue that bitcoin’s weakness reflects a temporary supply overhang, investor “muscle memory” favoring familiar precious metals and its correlation with risk assets, rather than a collapse in long-term demand.
  • Many bitcoin proponents still see BTC as a superior long-term store of value and “digital gold,” predicting that, once traditional hard assets are overbought, capital will rotate into bitcoin, allowing it to “catch up” to gold.

It’s no secret that bitcoin BTC$89,129.30 is currently failing its many narratives, including the claim that it can serve as an inflation hedge or a safe-haven asset amid uncertainty.

While gold has climbed more than 80% during this period of high inflation, geopolitical skirmishes, and interest rate uncertainty, bitcoin has dropped 14% year over year.

STORY CONTINUES BELOW
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In theory, assets that protect against inflation should rise when the value of money falls. For gold and the rest of the precious metals complex, that theory has worked. For digital gold, not so much.

That divergence has raised fresh questions: why would anyone buy bitcoin now when precious metals and equities give better returns?

CoinDesk has asked a group of longtime bitcoin bulls, and this is how they are defending buying bitcoin:

Comfort in the known (Jessy Gilger, senior advisor at Gannett Wealth Advisors, a bitcoin-native wealth management firm)
Transfer of ownership (Mark Connors, chief investment officer at Risk Dimensions)
Tech stock problem (Charlie Morris, CIO ByteTree)
Delayed rotation coming? (Peter Lane, CEO Jacobi Asset Management)
Need another demand driver (Anthony Pompliano, Chairman & CEO of ProCap Financial)
A permanent solution to inflation? (David Parkinson - CEO Musquet, BtC lightning)
Bitcoin's time is coming (Andre Dragosch - Bitwise)

Read more: Bitcoin in a deep bear market against gold, history suggests downside may persist

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