Bitcoin vs Gold: 26% Relative Undervaluation, Analyst Says

Bitcoin is 26% undervalued relative to gold, according to Dovile Silenskyte, director of digital assets research at WisdomTree. The analysis challenges the prevailing media narrative that treats bitcoin as a high-beta risk asset that rises when liquidity is abundant and falls when markets turn defensive.

Silenskyte argues that bitcoin is evolving into a monetary asset that competes directly with gold, rather than merely serving as a proxy for risk appetite. This structural shift suggests that traditional correlations with equities and liquidity cycles may weaken over time. For crypto traders, the relative valuation metric offers a framework for positioning bitcoin within a broader portfolio alongside gold, a comparison that has gained traction as institutional adoption grows. Traders can monitor bitcoin's price action against gold on NowPrice's live crypto dashboard to track this dynamic in real time.

Looking ahead, the key question is whether bitcoin can continue to narrow the valuation gap with gold as macroeconomic conditions evolve. Factors such as Federal Reserve policy, inflation trends, and ETF flows will likely influence this relationship. The 4-year halving cycle and its historical impact on supply scarcity also remain relevant for long-term valuation comparisons.