Opinion: Tether's purchase of gold is a strategic treasury decision; Bitcoin and gold can coexist as complementary assets

PANews reported on February 26 that Ivan Lee, Head of Trading at QCP Group, stated that Tether's large-scale purchase of gold is a strategic treasury decision rather than an ironic commentary on the "digital gold" narrative. Gold, as the most widely accepted non-sovereign reserve asset globally, can complement bitcoin: it reduces correlation with crypto liquidity cycles and can hedge against regulatory shocks or sudden crypto-specific tail risks such as deleveraging. Ivan pointed out that Tether has accumulated about 130 tons of gold, with its purchases in the fourth quarter of last year accounting for 10% of central bank gold demand during the same period. Bitcoin acts as a high-beta risk asset during tightening periods, while in times of monetary expansion it exhibits gold-like properties. Investors can utilize both: gold to hedge against short-term crises and liquidity pressures, and bitcoin to hedge against long-term policy risks and currency depreciation, but allocation size and risk control should be set according to their respective drawdown characteristics.