Bitcoin struggles to unseat gold as top hedge, says Matrixport

Gold continues to hold an advantage over Bitcoin despite efforts to establish the cryptocurrency as a digital form of gold, according to an analysis by crypto financial services firm Matrixport. The firm noted that as the U.S. dollar's value declines amid anticipated interest rate cuts by the Federal Reserve, the market is seeking hedges to diversify investments. However, investors have turned to the traditional safe haven of gold rather than newer alternatives like crypto. Matrixport stated that despite the digital gold narrative, central banks still view BTC as a highly volatile asset and are reluctant to adopt it. The firm added that a long-term variable is U.S. policy, suggesting that the Trump administration could potentially sell some of the country's gold reserves or diversify into BTC next year.