Bitcoin or Gold: Which Is the Better Hedging Asset in 2025?

Given the Trump administration’s vocal and demonstrated support for crypto, some investors are likely wondering whether gold’s days as the world’s favorite hedge asset are numbered. André Dragosch, European head of research at Bitwise Asset Management, suggests the choice isn’t so simple. In a post on X Saturday, he offered a rule-of-thumb: gold still works best as protection against stock market losses, while bitcoin increasingly acts as a counterweight to bond market stress. GOLD: HEDGE OF CHOICE The reasoning starts with history. When equities sell off, investors often rush into gold. Decades of market data back this up. Gold’s long-run correlation with the S&P 500 has hovered near zero, and during market stress, it often dips into negative territory. For example, in the 2022 bear market, gold prices rose about 5% even as the S&P 500 tumbled nearly 20%. That pattern illustrates why gold is still considered the classic “safe haven.” BITCOIN: A BOND MARKET COUNTERWEIGHT Bitcoin, by contrast, has often struggled during equity panics. In 2022, it collapsed by more than 60% alongside tech stocks. But its relationship with…