Opinion: Tether's purchase of gold is a strategic treasury decision, and Bitcoin and gold can coexist as complementary assets.

BTC-1.94%

PANews February 26 News, QCP Group Trading Director Ivan Lee stated that Tether’s large-scale gold purchases are a strategic treasury decision, not a satire of the “digital gold” narrative. Gold, as the most widely accepted non-sovereign reserve asset globally, can complement Bitcoin: reducing correlation with crypto liquidity cycles and hedging against regulatory shocks or sudden deleveraging tail risks. Ivan pointed out that Tether has accumulated about 130 tons of gold, with last year’s Q4 purchases accounting for 10% of central bank gold demand during the same period. Bitcoin behaves as a high-beta risk asset during tightening periods and exhibits gold-like properties during monetary expansion. Investors can consider both: gold for hedging short-term crises and liquidity pressures, and Bitcoin for hedging long-term policy risks and currency devaluation, but they should set allocation sizes and risk controls based on their retracement characteristics.

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