Bitcoin has shown signs of detaching from its identity as a risk asset, behaving more like a hard asset in economic environments where gold typically underperforms, according to Citi Research analysts.
Citi analysts stated in a recent report that Bitcoin has outperformed during periods of rising interest rates and term premiums, conditions that tend to pressure gold.
Historically, gold tends to perform better when both term premiums and yields decline, reducing the opportunity cost of holding the non-yielding asset.
But the strongest returns for Bitcoin came during the opposite setup, where real prices rise and inflation concerns increase.
The findings suggest that Bitcoin may behave more like commodities such as energy or base metals, which tend to rise during periods of economic excess.
