Bitcoin and Gold as Inflation Hedges: Coinbase Institutional Strategy Head Explains

Bitcoin's Recent Rally and Decoupling

• 🚀 Bitcoin has seen a significant rally, returning to the $93,000-$94,000 range after a recent low around $76,000.
• 💡 The discussion centers on whether Bitcoin is decoupling from traditional tech stocks, with a focus on neutral to negative correlation, especially during market downturns.
• ⚠️ A disclaimer is issued that this is a short-term dataset (April) and behavior may not persist or repeat under similar future conditions.

Institutional Capital and D-Dollarization Trade

• 🎯 Sovereign wealth funds and large institutional investors are identified as the primary buyers during April.
• 💰 One key driver is the d-dollarization trade: if tariffs impact global trade and reduce demand for US dollars, investors may hold more Bitcoin as an alternative.
• 📈 This contrasts with retail behavior, where Bitcoin ETF flows were net negative in April, while gold ETF inflows were massive.

Bitcoin's Core Characteristics and Inflation Hedging

• 🔑 Bitcoin is increasingly trading on its core characteristics, similar to gold: scarcity, immutability, non-sovereign nature, and portability.
• ⚡ The unwinding of the