Financial expert and portfolio strategist Karel Mercx has announced that the long-standing debate between Bitcoin and precious metals is now settled, asserting that the concept of Bitcoin as “digital gold” has been dismantled by the economic conditions expected in 2026.
In a series of critical commentaries, Mercx highlights how Federal Reserve policies have propelled Gold and Silver to unprecedented all-time highs, while Bitcoin has failed to fulfill its role as a reliable hedge against market uncertainty.
The Final Judgment on Currency Debasement
Mercx believes the market’s decision is clear. With central banks mounting what he describes as a direct challenge to the Federal Reserve’s authority, investors are increasingly turning towards tangible assets instead of digital currencies for security.
“The conclusion is unmistakable: when it comes to protecting value from debasement, Gold & Silver outperform Bitcoin,” Mercx stated. “As this frontal assault on the FED pushes metals to new record highs, BTC lingers roughly 20% below its previous peak. The once-promising narrative no longer holds water.”
The Notion of “Bitcoin Derangement Syndrome”
Some critics endorse Mercx’s perspective about the broken narrative but attribute it to what they call “Bitcoin Derangement Syndrome” (BDS). This term often refers to financial professionals who refuse to acknowledge their early skepticism or misjudgment regarding Bitcoin’s potential.
Back in 2013, Mercx publicly questioned whether any rational investor would pay such high prices for BTC—a statement that now seems ill-timed given recent developments.
Nevertheless, Mercx firmly denies being an outsider or sidelined observer in this space. He emphasizes his experience across three full cycles of Bitcoin’s market behavior.
The analyst explains that Bitcoin acts like a liquidity magnet with its price movements closely tied to monetary policy factors—specifically correlating with yields on short-term US government debt instruments like the two-year Treasury note.
“Bitcoin’s remarkable past returns were not accidental magic but rather products of an extraordinary monetary environment lasting nearly a century… Its most significant price surges occurred when US two-year yields remained suppressed below 1%. In essence, cheap and plentiful liquidity served as rocket fuel for speculative assets like BTC,” he concluded.