Bitcoin vs Gold: Relative Value Says Crypto Is Cheap

WisdomTree’s latest digital assets note argues that Bitcoin is not best viewed in isolation, but as a monetary asset relative to gold—and on that basis it screens materially undervalued. 

• WisdomTree’s Bitcoin-in-Gold model estimates Bitcoin was 26% below fair value versus gold as of 31 March, with an actual ratio of 15.6 versus model value 21.1.
• The framework links relative pricing to real yields, dollar strength, liquidity, ETF flows, and inflation expectations.
• In an inflation shock, gold may lead initially, but Bitcoin could later catch up as liquidity and breakeven dynamics adjust.
• WisdomTree stresses Bitcoin and gold are complements, not substitutes.

Is Bitcoin expensive—or simply mismeasured? The note argues gold may be the cleaner benchmark than equities.