Still, fans of gold think the yellow metal is due for a rebound — even if bitcoin continues to march higher as well.
Gold is a classic fear trade. Prices rallied last year on worries about coronavirus lockdowns crippling the global economy. But gold also does well when investors are worried about inflation — as they are now.
“Investors need a serious hedge against inflation, and bitcoin may not offer that,” said Ipek Ozkardeskaya, senior analyst with Swissquote, in a recent report.
Some investors think inflation fears could run rampant again if the US Senate passes President Joe…