Big Warning Alert! Gold Rates Vs Bitcoin: Why Sell Largest Cryptocurrency For Glittering Yellow Metal?

There was a time when world's largest cryptocurrency, Bitcoin was seen as attractive as gold, the biggest and traditional old safe haven asset amidst geopolitical tensions. However, a lot has changed as the dynamics of war intensify. Bitcoin whose performance has seen a sharp correction in a year, gold on the other hand, has emerged among top money making asset since past two years. And looks like global brokerage Jefferies' Christopher Wood is planning to join the gold rally bandwagon.

Buy Gold, Sell Bitcoin!

In the latest Greed & Fear report, Christopher Wood, the global equity strategist of Jefferies, revealed their plan to remove entire 10% allocation in Bitcoin sometime later this week and shift them to yellow metal. As per ANI, this is due to long-term concerns over the rise of quantum computing.

Jefferies Warning On Bitcoin:

According to the report, Jefferies warns about advanced quantum computers which could pose a serious threat to Bitcoin. They explained that there is intense vulnerabilities in older holdings and reused addresses, which could put an estimated 4-10 million of BTC at risk. Hence, the quantum computing shows the probability of theft of up to half of all circulating coins within hours.

However, the Greed & Fear report also clarifies that they do not see a steep decline Bitcoin prices in the short term, due to the "quantum issue". But from a long-term perspective, Bitcoin is seen as less reliable store of value. Hence, they have decided to exit their exposure in Bitcoin.

It also said, "While GREED & fear does not believe that the quantum issue is about to hit the Bitcoin price dramatically in the near term, the store of value concept is clearly on less solid foundation from the standpoint of a long-term pension portfolio. For that reason, GREED & fear will remove the 10 per cent allocation to Bitcoin this week."

Could Bitcoin Be Stolen?

It needs to be noted that Bitcoin uses cryptography for ensuring safety and security.

A report of Deloitte the relation of quantum computers and cryptography. As per the report, in asymmetric cryptography, a private-public key pair is generated in such a manner that the two keys have a mathematical relation between them.

This means that the private key is secret, while the public key is made publicly known. The move allows individuals to generate a digital signature (using their private key) that can be verified by anyone who has the corresponding public key.

Deloitte report points out that the method is very common in financial industry to prove authenticity and integrity of transactions.

But the nature of security in asymmetric cryptography is called as "one-way function".

This principle dictates that the public key can be easily derived from the private key but not the other way around. All known (classical) algorithms to derive the private key from the public key require an astronomical amount of time to perform such a computation and are therefore not practical, as per the report.

How does it apply to Bitcoin? First and foremost, Bitcoin isa decentralized system for transferring value. According to Deloitte report, unlike the banks globally, where the bank is responsible to ensure their customers get their bank account, in case of Bitcoin, it is the BTC user who is responsible for generating their own address which can be random too.

And just like sending money from one bank account to another, Bitcoin is also moved to one address to another which is called transaction.

But here's the catch, as we learned above, in Bitcoin, the sender must authorize their transaction by providing a digital signature that proves they own the address where the funds are stored. But remember, someone with an operational quantum computer who has your public key could falsify this signature, and therefore potentially spend anyone's Bitcoins!

Gold Rates Vs Bitcoin

Nonetheless, the Jefferies report also said, their allocation in Bitcoin has seen significant surge over the past years. Since the time they first allocated in Bitcoin on December 17, 2020, Bitcoin has reported 325% surge which is far better than 145% gains from gold bullion.

But over the latest performance, gold is outperforming Bitcoin.

Bitcoin Price:

As per Trading View, Bitcoin has dropped by 5.4% in a year. Although, the start of January has been fruitful as BTC gained nearly 6% so far in the current month.

As the time of writing, BTC is down nearly 1% to trade below $95,000 level. Bitcoin is currently down by 25% from its all-time high of $126,198.07 that was seen on October 7 last year.

Gold Rates:

This is not the case with gold. The yellow metal is up by nearly 70% in a year. In January 2026 so far, gold has surged by 6% to 7%. While in past 1 month, the rally is nearly 6%.

According to Trading Economics, geopolitical tensions surrounding Iran eased further after President Donald Trump reiterated that he may delay any military action, citing signs that the crackdown on protests was moderating and that large-scale executions would not proceed. At the same time, stronger US economic data reinforced the view that monetary policy will remain restrictive for longer, prompting investors to further scale back bets on an imminent Fed cut. Markets now broadly expect rates to remain unchanged later this month, with the next fully priced easing pushed deeper into mid-2026. Despite the pullback, gold remains near record levels and is still set for a weekly gain, underpinned by its strong run earlier in the week.

Gold is currently around $4,560 per ounce.

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