Tether's recent acquisition of approximately 130 tons of gold is a strategic treasury decision, according to Ivan Lee, Head of Trading at QCP Group. This move is not a contradiction to Bitcoin's "digital gold" narrative but rather a complementary strategy. Gold, as a widely accepted non-sovereign reserve asset, helps reduce correlation with crypto liquidity cycles and hedges against crypto-specific risks like regulatory shocks.
Lee highlighted that Tether's gold purchases in the fourth quarter accounted for 10% of central bank gold demand during that period. He noted that while Bitcoin carries high-beta risk during tightening periods, it exhibits gold-like characteristics during monetary expansion. Investors can use gold to hedge against short-term crises and liquidity pressures, while Bitcoin serves as a hedge against long-term policy risks and currency devaluation, with allocations tailored to their risk profiles.
Tether's Gold Purchases Seen as Strategic Treasury Move
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
