TLDR
- Renowned macroeconomist Lyn Alden predicts Bitcoin will surpass gold’s performance over the coming two to three years
- Gold recently touched a record peak near $5,608 in January, with market sentiment indicating “Greed” at 72/100
- Bitcoin has declined 44% from its October peak of $126,000, with current sentiment showing “Extreme Fear” at 18/100
- Hedge fund billionaire Ray Dalio recently cautioned against Bitcoin for long-term wealth preservation, endorsing gold as “the most established money”
- CryptoQuant’s CEO Ki Young Ju observed in October 2025 that Bitcoin’s price correlation with gold continues to strengthen
Macroeconomic analyst Lyn Alden has declared her confidence in Bitcoin delivering stronger returns than gold during the next two to three years, pointing to overextended bullishness surrounding gold and unjustifiably pessimistic views on Bitcoin.
During her appearance on the New Era Finance podcast this week, Alden expressed her position unambiguously. “If forced to choose which asset performs better, I’d pick Bitcoin,” she stated.
Gold recently achieved a record high near $5,608 during January. Alden characterized the prevailing sentiment as “bordering on euphoric,” while clarifying she wouldn’t classify it as bubble territory yet.
This assessment finds support in the JM Bullion gold Fear and Greed Index, which displayed a “Greed” measurement of 72 out of 100 on Friday.
Bitcoin, meanwhile, occupies drastically different sentiment territory. The Crypto Fear and Greed Index registered an “Extreme Fear” level of 18 out of 100 during the same timeframe.
Bitcoin currently trades at $71,164. This represents a 44% decline from its October record of $126,000, based on CoinMarketCap data.
Alden contends the pessimistic outlook surrounding Bitcoin is “disproportionately negative,” suggesting this sentiment disparity between the two assets presents a compelling investment opportunity.
She characterized the dynamic between Bitcoin and gold as pendulum-like. “Given gold’s substantial appreciation, the diminishing returns narrative that applies to each cycle will likely be invalidated in the upcoming one as well,” she explained.
Ray Dalio Takes The Other Side
Alden’s perspective isn’t universally shared. Billionaire hedge fund manager Ray Dalio issued a warning this week regarding Bitcoin’s suitability as a long-term wealth preservation tool, noting its absence of central bank backing and lingering questions about privacy protections and quantum computing vulnerabilities.
Dalio designated gold as “the most established money” and emphasized its status as the second-largest reserve holding among central banks worldwide.
“Gold isn’t merely a precious metal subject to speculation,” Dalio remarked on Tuesday.
The two assets regularly face comparison as alternatives to government-issued currencies. However, Alden advised against overinterpreting their relationship. “Both gold and Bitcoin can appreciate simultaneously, or decline together,” she noted.
Bitcoin’s Correlation With Gold Is Growing
Regardless of the ongoing debate about which asset will prevail, their trajectories are aligning in at least one respect. CryptoQuant CEO Ki Young Ju highlighted in October 2025 that Bitcoin’s correlation coefficient with gold continues rising as both assets establish themselves as protection against macroeconomic instability.
Coinbase CEO Brian Armstrong has forecast Bitcoin reaching $1 million by 2030, attributing this projection to improved regulatory clarity in the United States.
Bitcoin is presently trading at $71,164 as of this week.
