Bitcoin and Gold as Inflation Hedges Amid Long-Term Monetary Trends

According to BlockBeats, global liquidity expert Michael Howell recently discussed the enduring impact of monetary inflation on markets over the past decade, predicting it will persist for at least another 20 to 30 years. In this macroeconomic context, Bitcoin and gold are seen as viable hedges against inflation. Howell suggests that investors should adjust their Bitcoin holdings based on volatility to optimize risk and return. Howell referenced data from the U.S. Congressional Budget Office (CBO), noting that from 2000 to 2025, U.S. federal government debt increased tenfold, while the S&P 500 index rose less than fivefold, and gold prices surged twelvefold. This expanding debt environment provides long-term value support for Bitcoin and gold. Regarding Bitcoin market cycles, Howell stated that he has not found clear evidence of a "four-year cycle" in historical data, but the halving cycle is observable, with current trends showing a gradual convergence. He emphasized that investors should consider both long-term trends and cyclical fluctuations when building a cryptocurrency portfolio. In terms of investment strategy, Howell advises that investors should focus on Bitcoin, gold, and high-quality assets that perform well during inflationary periods, such as premium residential real estate and stocks of companies with pricing power. Additionally, tactical adjustments can be made within the portfolio to manage risk and optimize returns as market cycles reach turning points.