Recently, the yield on the U.S. 30-year Treasury bond has surpassed the 5% mark, while the yield on Japan’s 30-year Treasury bond has also reached a record high, significantly diminishing the protective ability of traditional government bonds during the “risk-off” period. In stark contrast, Bitcoin Price USD quickly rebounded after a pullback at the $107,000 level, currently quoted at $107,871.

The decline of the hedging function of government bonds

Over the past decade, government bonds have long been regarded as a safe haven in investment portfolios due to their low risk and fixed returns. However, in an environment of high inflation and tightening monetary policy, bond yields have instead fluctuated in the same direction as the stock market, failing to effectively hedge against risks.

Bitcoin vs. Gold: A Comparison of Old and New Safe-Haven Assets

• Supply cap: The total amount of Bitcoin is 21 million coins, which has a stronger anti-inflation attribute; the supply of gold is affected by fluctuations in mining.
• Liquidity: Digital asset trading 24/7, with no time restrictions; gold trading is affected by market hours.
• Divisibility: Bitcoin can be divided up to eight decimal places, making it suitable for small-scale hedging.

Digital Gold: Evolution of Market Value and Acceptance

Since 2020, Bitcoin’s market capitalization once exceeded one trillion USD, comparable to the size of gold ETFs. The gradual entry of institutions and national sovereign wealth funds marks the establishment of its status as digital gold.

Structural advantages of Bitcoin Price USD

The current price has significantly deviated from the cost range of most short-term traders, forming a natural support. At a time of increasing macroeconomic uncertainty, its hedging and diversification attributes are becoming more pronounced.

Configuration Suggestions

• Core-Satellite Strategy: Allocate 5% to 10% to Bitcoin in traditional asset allocation for hedging extreme risks.
• Investment method: Use a fixed periodic investment (such as investing monthly) to reduce the risk caused by fluctuations in entry costs.
• Risk management: It is recommended to use cold wallets or trust services, and multi-signature to ensure asset security.