Why Debasement Trade Boosts Bitcoin More Than Gold – StoneX’s Cincotta

Bitcoin’s breakout aligned with the U.S. Treasury’s August 19 announcement of increased long-dated bond buybacks. The price surged past 65,000 dollars that day and reached 87,000 dollars, a 35 percent gain. At the same time, U.S. bitcoin ETFs recorded 4.6 billion dollars in net inflows, while bitcoin itself climbed 44 percent for the quarter.

Gold, by contrast, advanced only 8 percent despite posting the second-largest monthly ETF inflows on record in August. Fiona Cincotta of StoneX attributes gold’s limited upside to renewed expectations of a higher-for-longer Fed policy, which raises the opportunity cost of holding a non-yielding asset.

Cincotta notes that the debasement trade currently favors bitcoin. The bitcoin-to-gold ratio hit 19.89, its highest level this year. She looks for a sustained move above 87,000 dollars to open the path toward 90,000 and the psychological 100,000-dollar mark.