Bitcoin (BTC) is not only increasing in value against the US dollar but is also outperforming gold, a tangible asset with centuries of history. This trend emerges as concerns about public finances in developed economies consistently make headlines.
According to TradingView data, the bitcoin to gold ratio—calculated by dividing the price of one BTC by the price of one ounce of gold—has risen to 18,17 times, its highest level since january. Simply put, one bitcoin is currently equivalent to over 18 ounces of gold. Over the past two days, bitcoin has traded around 80.000 USD on major exchanges.
Both assets are seeing price increases after a period of underperformance compared to the surge in AI-related stocks in the US and parts of Asia. Experts suggest that a key reason is the growing concern that governments, including the US, may resort to weakening or devaluing their currencies to alleviate debt burdens through inflation.
With the exception of Switzerland, every major developed economy has a debt-to-GDP ratio exceeding 100%. The US currently leads in primary budget deficit—the deficit remaining after excluding interest payments. This indicator better illustrates how much governments are spending beyond their revenue before accounting for debt servicing.
Policymakers, for their part, are banking on economic growth to escape debt burdens, rather than narrowing deficits through austerity measures. "The world is awash in debt... and the only way we're going to get out of this is to grow our way out of it," said US Treasury Secretary Scott Bessent at a G20 finance ministers meeting in North Carolina on 31/8/2026.
Anthony Scaramucci, founder of SkyBridge Capital and a long-time bitcoin advocate, immediately leveraged this statement as a promotional opportunity. According to him, the US Treasury Secretary stood before the G20 and stated that the world is awash in debt, and the entire argument supporting bitcoin lies within that very statement.
"The 20 finance ministers just created the best bitcoin advertisement of the year, even though none of them intended to," Anthony emphasized.
Others also agree with this perspective. The core argument of cryptocurrency proponents is that bitcoin operates outside the traditional financial system, and unlike the US dollar, yen, euro, or other fiat currencies, bitcoin cannot be devalued by a mere policy decision.
The positive outlook for the world's largest cryptocurrency is also bolstered by significant capital inflows. US spot bitcoin ETFs attracted approximately 277 million USD on 3/9/2026, following four alternating sessions of inflows and outflows. ETFs are key instruments for large financial institutions and organizations to participate in the cryptocurrency market.
Investors generally place nearly equal odds on the US Federal Reserve (Fed) raising interest rates this month, a decrease from over 63% earlier in the week, according to the CME FedWatch tool. This has pulled bond yields back and prompted buyers to shift towards risk assets across the market. Fed Governor Christopher Waller initiated this sentiment by stating he would support maintaining current interest rates if price pressures continue to ease.
Tieu Gu (according to CoinDesk)
