Gold and Bitcoin have followed sharply different trajectories in recent months, and Yardeni Research attributes much of that divergence to changes in currency values.
In a note outlining its views, Yardeni Research revisited the long-standing question of whether Bitcoin can be considered "digital gold." The firm emphasised a shared valuation challenge for the two assets, stating they are "impossible to value because they don’t pay any interest or dividends."
Despite that commonality, Yardeni Research drew attention to important distinctions between the assets. The research house warned that the intangible, digital nature of Bitcoin could leave it "potentially vulnerable someday to hacking by quantum-computing algorithms," whereas gold continues to require and rely on physical storage.
The firm also flagged the persistent volatility of Bitcoin. Yardeni Research noted the token surged "to a record high of almost $125,000 in late 2025" before sliding back toward $90,000. By contrast, gold staged a prolonged advance after it "broke out decisively" in March 2024, rising 2.5 times since that breakout and moving above $3,000 per ounce in early 2025. Yardeni Research maintains a long-term view for the metal, projecting that gold could reach $10,000 by the end of the decade.
Yardeni Research identified recent currency movements as a catalyst intensifying the gap between the two stores of value. The note states that "a weaker dollar is bad for bitcoin because it depresses bitcoin’s value in other currencies," a dynamic that can prompt overseas holders to sell their positions. The report suggests some of that capital may be rotating into gold, a market that has already shown strong gains.
The firm added that a softer dollar may also "put upward pressure on US inflation, which would also boost the price of gold." Beyond the two assets, Yardeni Research said dollar weakness "tends to benefit U.S. investors in overseas markets and supports its overweight call on emerging market equities."
Summary and context
The research note links currency dynamics to recent performance differences between Bitcoin and gold, underlining valuation limits shared by both assets, highlighting Bitcoin-specific security concerns, and noting how a weaker dollar can shift capital flows and influence inflationary pressures that are supportive of gold.
Key takeaways and affected market sectors appear below.