Gold and Bitcoin have diverged sharply in recent months, with Yardeni Research arguing that currency movements are becoming a key driver of that split.
In its latest report, the firm revisited the long-standing question of whether Bitcoin can be considered “digital gold,” pointing out that both assets are difficult to value since neither generates interest or dividends. However, Yardeni cautioned that Bitcoin’s purely digital form could make it “potentially vulnerable someday to hacking by quantum-computing algorithms,” whereas gold’s main drawback is the need for physical storage.
Bitcoin’s volatility has persisted. Yardeni noted that the cryptocurrency surged to a record near $125,000 in late 2025 before retreating toward $90,000.
Gold, by contrast, has been in a strong uptrend since it “decisively broke out” in March 2024. Prices have climbed roughly 2.5 times since then, moving above $3,000 an ounce in early 2025. The firm maintains its long-term outlook that gold could reach $10,000 by the end of the decade.
According to Yardeni Research, recent currency shifts are widening the gap between the two assets. The firm said a weaker U.S. dollar tends to hurt Bitcoin because it lowers Bitcoin’s value in other currencies, potentially encouraging foreign investors to sell. Some of those flows, it suggested, may be rotating into gold instead.
In addition, a softer dollar can put upward pressure on U.S. inflation, which would further support gold prices. Yardeni also noted that dollar weakness generally favors U.S. investors in overseas markets, reinforcing its overweight stance on emerging-market equities.
Sources: Investing
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