Investors buy both gold and Bitcoin as hedges against fiscal anxiety

Gold and Bitcoin are advancing together as investors increasingly position for the 'debasement trade,' driven by mounting fiscal anxiety over rising US national debt and surging interest obligations. The US national debt recently surpassed $40 trillion, with annual interest servicing approaching $1 trillion. In response, gold has surged over 15% month-to-date to trade above $4,700 per ounce, while Bitcoin gained more than 20% on a weekly basis to hold above $77,000. Institutional strategists and prominent investors, including Bridgewater Associates founder Ray Dalio, are advocating for structural portfolio shifts away from traditional fiat allocations toward hard assets that cannot be inflated. Research from Bitwise and JPMorgan indicates that combining gold with Bitcoin in a 15% aggregate portfolio weighting nearly tripled the Sharpe ratio compared to a traditional 60/40 allocation between 2018 and 2025. With supply growth restricted by mining limits for gold and algorithmic scarcity for Bitcoin, market participants increasingly treat both assets as complementary safe havens amid persistent fiscal deterioration.