Bitcoin has been on a decline for the past few days in tandem with the stock market. On March 10, it slipped to $78,500—its lowest point since November 2024.

The decline in the digital gold’s fortune can be attributed to the fear of recession and the disappointment around US President Donald Trump’s executive order to establish the Strategic Bitcoin Reserve that didn’t direct the government to buy additional Bitcoin.

However, gold itself has proven to be a resilient asset amidst such trying times. On March 13, the price of gold hit an all-time high of $2,979.76 an ounce.

One reason for the exceptional performance of the yellow metal is the general reliance on the asset amidst uncertainty in the market. As the global tariff war triggered by US President Donald Trump's erratic trade policies triggers panic, investors have turned to gold.

Gold has often been referred to as the ultimate hedge against inflation. Crypto enthusiasts have claimed that Bitcoin, the “digital gold,” can also be trusted as a hedge against inflation. The cryptocurrency has a scarcity factor, making it a useful store of value during inflation.

The latest Consumer Price Index (CPI) data revealed that inflation rose less than forecasted in February 2025. The report showed a 0.2% monthly hike against the 0.3% forecast. The year-over-year (YOY) inflation slowed to 2.8% against the 2.9% forecast.

The positive data gave some respite to the market, but the fear of a slower economy continues to grip the crypto market as well as the stock market. Bitcoin was trading at $80,609.15 at press time.

In contrast, gold’s resilient performance seems to have consolidated its position as the ultimate hedge against inflation.