Gold's Bull Run Highlights Bitcoin's Defensive Shortcomings
Bitcoin's defensive case has come under scrutiny as gold's 25-year bull run puts its role in investor portfolios into focus. According to Morgan Stanley chief US equity strategist and CIO Mike Wilson, gold has been a reliable portfolio shield during times of market stress.
Gold's ability to behave differently when other parts of a portfolio break down is what allocators are buying when they move into the asset. By contrast, Bitcoin's price action often mimics that of risk assets during sharp equity selloffs, making it less effective as a defensive allocation.
This distinction matters for institutional portfolios, where a defensive allocation should be boring in times of stress. Wilson's framing suggests that Bitcoin is not likely to replace gold in the near term, especially for investors prioritizing capital protection over upside capture.