August has put a small bump in what remains a longer term trend for digital assets. Bitcoin has dropped by around 6.5% – its first monthly decline since March – after briefly touched a new summit of $ 125,000 in the middle of the month. Ether, on the other hand, extended its strong race, winning almost 19% and raising its share of global market capitalization at around 13%. This rotation of bitcoin in ether was also visible in FNB: Bitcoin funds saw rare net outings, suggesting a certain achievement after this year’s extraordinary rally, while the Ether ETHE attracted heavy entries that pushed the assets under management at record levels. Consequently, the domination of Bitcoin has slipped to its lowest point since January, leaving the global market capitalization of almost stable digital assets in the month.
Despite these side performance, market activity has remained high. Trading volumes to the point above their average of twelve months – unusual for the typically calm summer season – and the derivative markets were just as animated. The interest open in Bitcoin and Ether options has reached new heights, and August has set a record for trading volumes of BTC options at $ 145 billion. Implicit volatility has remained relatively moderate but has turned towards the end of the month, suggesting that the options market can underestimate the risks.
While Bitcoin stopped, gold was in tears. A perfect storm of lowering rate expectations, persistent central inflation, widening trade deficits, lower dollar, geopolitical risks and increasing political uncertainty propelled yellow metal to successive record peaks. The dismissal of the Governor of the Fed, Lisa Cook by the Trump administration, has still aroused concerns concerning the long -term independence of the federal reserve. The Treasury barely moves, but gold – as a traditional coverage against inflation and systemic risk – has grown strongly. Bitcoin, however, exchanged below the day of staging the news.
This raises the lasting question of whether Bitcoin really deserves the “Digital Gold” label. Its rarity and libertarian origins support the analogy, but the data tell a more nuanced story. The short -term correlations between bitcoin and gold were incoherent, oscillating approximately 12% and 16% on windows of 30 and 90 days. On longer horizons (180D)The average correlation is slightly higher, but still low. In other words, the two active ingredients have not reliably moved. However, since 2024, the correlation of average bearing of 180 days has shown a significant increase to around 60%. The effect is also visible on shorter horizons, although less pronounced. A reasonable interpretation is that the story of “digital gold” begins to become firmer with investors as the asset class ripens.
It should also be remembered that gold itself has an imperfect assessment as a macro and hedge of inflation. It does not follow consumer prices month a month, although for decades, it has better preserved the purchasing power than most of the assets. Research also shows that gold can serve as refuge during episodes of extreme equity stress, but not always, as illustrated by its mixed relationship with the VIX.
For Bitcoin, the story is still in flow. Some investors consider it a technological game; Others see it as emerging macro coverage. We believe that they are more durable over time. Unlike other blockchains, the limited scalability of Bitcoin, rigid governance and the lack of exhaustiveness of Turing mean that it will become short time to become a multi-application platform. Other protocols are much better suited to this role. Instead, the Bitcoin long -term value proposition is based on its rarity and neutrality – characteristics that echo the monetary role of Gold.
Of course, these stories take time to solidify. Gold has forced millennia to become widely accepted as a value store. Bitcoin, in comparison, is only sixteen, but he has already reached remarkable levels of recognition and adoption. The analogy of “digital gold” may not be entirely supported by data today, but it is far too early to reject it. If anything, history suggests that history is always being written.
Legal warning
The information presented, displayed or otherwise provided is for educational purposes only and must not be interpreted as investment, legal or tax advice, or an offer of sale or solicitation of an offer to buy interest in a fund or another investment product. Access to the products and services of Lionsoul Global Advisors is subject to the eligibility conditions and the definitive terms of documents between potential customers and global Lionsoul advisers, as they can be modified from time to time.
