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Bitcoin(CRYPTO: BTC) may be nearing an inflection point against gold, fueling macro strategist Lyn Alden’s bullish outlook as speculative capital exits and its investor base matures.
Why Is BTC-to-Gold Bottoming?
Speaking on The Income Show on Aug. 31, Alden said the Bitcoin-to-gold ratio is “somewhat bottoming” after gold substantially outperformed Bitcoin over the past two years.
She called gold’s 2024-2025 advance a “generational” run, fueled partly by central-bank demand, geopolitical uncertainty and monetary expansion.
Bitcoin faced a different setup. Capital that previously treated it as the market’s “fastest horse” rotated toward artificial intelligence stocks and treasury companies.
She says Bitcoin is gradually evolving toward gold’s role as a monetary asset while remaining smaller and more volatile.
Despite recent underperformance, Alden remains bullish on Bitcoin over a two-to-three-year horizon.
Dollar ‘Endgame’ Favors Hard Assets
Alden also expects rising U.S. debt to push policymakers toward a prolonged period of financial repression, potentially extending into the 2030s.
She doesn’t expect an imminent dollar collapse. Instead, highly indebted governments could increasingly rely on inflation and policies that suppress real returns on cash and bonds.
That backdrop could support scarce assets such as Bitcoin and gold.
Alden also pointed to increased Treasury buybacks of longer-duration bonds as a signal that policymakers are becoming more sensitive to long-term yields, though she stressed the moves remain far from outright yield-curve control.
Is STRC The BTC-Backed Dollar?
Alden remains constructive on Bitcoin-backed credit products, including Strategy’s Inc.(NASDAQ:MSTR) STRC preferred.
However, she warned that leverage built around such instruments can create sharp deleveraging events.
For Bitcoin, her broader thesis remains intact. With fast money moving elsewhere, institutional access expanding and its relative performance against gold potentially stabilizing, the foundation for the next cycle may be taking shape.
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