In this week's Crypto Long & Short Newsletter, we delve into the fascinating world of Bitcoin and its evolving relationship with gold. Dovile Silenskyte, director of digital assets research at WisdomTree, presents a compelling argument that challenges the conventional narrative of Bitcoin as a risk asset. She argues that Bitcoin is increasingly becoming a monetary asset, competing with gold for macro allocation. This shift in perspective is crucial for investors to understand, as it highlights the potential for Bitcoin to be undervalued relative to gold.
Silenskyte's analysis reveals a 26% relative undervaluation of Bitcoin compared to gold, as of March 31, 2026. This undervaluation is not merely theoretical but reflects the current macro inputs embedded in the model. Bitcoin's behavior is distinct from gold, as it reacts more aggressively to macro shifts, such as falling real yields, easier liquidity, and rising inflation expectations. This dynamic makes Bitcoin a more volatile asset, but also a potentially lucrative one for investors who understand its unique characteristics.
The Bitcoin in Gold (BiG) model, developed by WisdomTree, provides a practical framework for investors to navigate this undervaluation. It offers three key applications: relative value trades, allocation tilts, and macro overlays. By tracking the gap between the actual Bitcoin/gold ratio and the model's fair value, investors can make informed decisions about when to buy or sell Bitcoin, and how to adjust their allocations.
Joshua de Vos, research lead at CoinDesk Data, shifts our focus to the centralized exchange market. His analysis reveals a complex landscape, with top-tier exchanges dominating in terms of volume, but also facing systemic vulnerabilities. The market-wide exchange failures on October 10th, 2025, caused significant price dislocations and affected a large number of trading pairs. This highlights the need for improved resilience and transparency in the exchange market.
The newsletter also highlights several important headlines in the crypto space. Circle's $222 million raise for its Arc blockchain token, Ripple's $200 million expansion of its Ripple Prime platform, and Morgan Stanley's entry into crypto trading with lower fees are all significant developments. Additionally, Michael Saylor's Strategy's potential sale of Bitcoin to fund dividend obligations adds another layer of complexity to the market.
The CoinDesk 80, a group of smaller-cap altcoins, has been outperforming large caps, with a 15.32% month-to-date gain. This divergence suggests that momentum is shifting towards smaller-cap altcoins as the broader crypto rally extends. The newsletter encourages readers to engage with the latest crypto news and market updates, providing valuable insights and resources for those interested in the industry.
In conclusion, this week's Crypto Long & Short Newsletter offers a comprehensive overview of the crypto market, with a particular focus on Bitcoin's relationship with gold and the evolving landscape of centralized exchanges. The analysis and insights provided by Dovile Silenskyte and Joshua de Vos offer valuable perspectives for investors and industry professionals alike.
