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NYDIG Says Bitcoin Is the Only Real Answer to Fiat Decline — Here's Why

Discover why NYDIG believes Bitcoin is the only true hedge against fiat currency decline. Explore key insights, market trends, and expert analysis comparing BTC to Ethereum and other altcoins.

As global markets wrestle with economic instability and investor confidence wanes in fiat currencies, digital asset manager NYDIG is making a bold claim: Bitcoin is the only real hedge against currency debasement. In a recent market analysis, NYDIG’s Head of Research, Greg Cipolaro, outlined why Bitcoin continues to outperform Ethereum and other cryptocurrencies, positioning itself as the top choice in an increasingly uncertain financial world.

Table of Contents

Economic Turmoil and the Search for Stability

Traditional markets have been rocked by a wave of uncertainty — from inflationary pressures to central bank policy shifts and geopolitical tensions. Investors have long turned to hard assets like gold during such times, but in the digital age, Bitcoin is emerging as the new "digital gold".

According to NYDIG, despite the recent "carnage" in traditional markets, the crypto space has remained surprisingly stable. Cipolaro highlights several key data points to support this:

  • Perpetual swap rates remain consistently positive

  • Liquidations, though present, were significantly lower than previous sell-off events

  • Futures markets (on-shore and off-shore) are showing healthy, positive basis

  • Stablecoins like USDT, while slightly off-peg, have not shown alarming instability

“Historically, in broad risk-off moves, we tend to see stresses show up in crypto markets. We have yet to see that,” said Cipolaro.

Bitcoin vs. Ethereum: The Widening Performance Gap

One of the most telling signs of Bitcoin’s growing dominance is the ETH/BTC ratio, which has plunged to levels not seen since 2019. While Ethereum continues to hold relevance in decentralized finance and smart contracts, its performance as a macro hedge is being questioned.

Cipolaro states that in the current volatile environment, many altcoins, including Ethereum, have failed to regain strong footing, whereas Bitcoin continues to demonstrate resilience and attract capital inflows.

“In a world of global uncertainty and a loss in faith of fiat currencies and sovereign nations,” Cipolaro notes, “there does not appear to be a second-best option to fiat debasement.”

Why Bitcoin? The Case for Digital Sound Money

Bitcoin’s value proposition has always been rooted in its fixed supply (21 million coins), decentralized nature, and resistance to monetary manipulation. These traits become especially attractive when fiat currencies face the consequences of central bank policies such as quantitative easing and unchecked money printing.

Unlike Ethereum, which continues to undergo structural and policy changes (e.g., shifting supply models, protocol upgrades), Bitcoin has remained consistent in its economic principles. This predictability is exactly what long-term investors seek during times of fiscal chaos.

BTC’s Market Performance: A Testament to Trust

At the time of NYDIG’s report, Bitcoin was trading around $84,984, continuing its strong 2025 performance. It has significantly outpaced Ethereum and other altcoins year-to-date, further reinforcing its position as the primary crypto asset for institutional and retail investors alike.

Market data suggests that large-cap investors are increasingly using BTC as a hedge not only against inflation but against systemic trust erosion in fiat systems. With macroeconomic concerns likely to persist, this narrative is expected to gain further traction.

Conclusion

While Ethereum and other crypto projects offer diverse use cases, when it comes to hedging against monetary debasement, NYDIG’s stance is clear: Bitcoin is unmatched.

In Cipolaro’s words, and now echoed by a growing portion of the financial world, Bitcoin is no longer just a speculative asset — it’s an essential tool for capital preservation in the face of fiat decline.

FAQs

Why does NYDIG believe Bitcoin is the best hedge against fiat currency decline?

NYDIG highlights Bitcoin’s fixed supply, decentralized nature, and stability amid economic turmoil as key reasons it outperforms other assets during fiat debasement. Bitcoin's predictable monetary policy makes it a stronger hedge than altcoins like Ethereum.

How has Bitcoin performed compared to Ethereum in 2025?

Bitcoin has significantly outpaced Ethereum in 2025. The ETH/BTC ratio has dropped to levels not seen since 2019, reflecting BTC’s superior market strength in a volatile macroeconomic environment.

What indicators show Bitcoin’s stability during economic volatility?

NYDIG points to positive perpetual swap rates, low liquidation volumes, a steady futures basis, and only minor USDT price deviations as signs of Bitcoin’s relative stability.

Is Ethereum no longer a viable store of value?

While Ethereum remains crucial for decentralized applications and smart contracts, its fluctuating supply and evolving protocol changes make it less reliable than Bitcoin as a long-term store of value, especially during fiat instability.

Could another cryptocurrency overtake Bitcoin in the future?

While innovation continues across the crypto landscape, Bitcoin’s established reputation, network effect, and fixed monetary policy position it uniquely as a digital store of value. NYDIG suggests that in the context of fiat debasement, there is currently “no second-best.”

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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