Bitcoin's comeback over gold? Economist Lyn Alden predicts that cryptocurrency returns will outperform precious metals over the next three years.

On March 6, macroeconomist Lyn Alden stated that she expects Bitcoin to outperform gold over the next two to three years. Alden pointed out that the current market is overly optimistic about gold, while Bitcoin is affected by excessive pessimism. This emotional disparity creates potential investment opportunities. She candidly said on the “New Era Finance” podcast, “If I had to choose one, I would pick Bitcoin.”

In January this year, gold prices hit a record high of approximately $5,608, with market sentiment described by Alden as “somewhat euphoric.” The JM Bullion Fear & Greed Index for gold showed the market was leaning toward “greed,” scoring 72. In contrast, Bitcoin’s fear and greed index was only 18, indicating “extreme fear.” Currently, Bitcoin trades at $71,164, down 44% from its October high of $126,000 last year. Alden believes this negative sentiment has been exaggerated and could lead to a stronger rebound in the future.

However, billionaire investor Ray Dalio holds a different view. He warned investors that Bitcoin lacks central bank backing and faces unresolved risks such as privacy concerns and quantum resistance, making it unsuitable as a long-term store of value. Dalio described gold as “the most mature currency” and the second-largest reserve asset held by central banks worldwide.

As Bitcoin and gold gradually establish reputations as hedges against macroeconomic uncertainty, their correlation is increasing. CryptoQuant CEO Ki Young Ju noted that this trend could continue over the next few years. Brian Armstrong, CEO of the largest compliant U.S. CEX, predicts that by 2030, Bitcoin could surpass $1 million, citing clearer regulation as a key driver.

Overall, Bitcoin and gold each have their advantages and risks, but emotional divergence may present unique opportunities for crypto investors. Current Bitcoin price fluctuations and market fear indices suggest a potential buying window, making future trends worth watching.