Anti-Fiat Asset: An anti-fiat asset is an asset that challenges or offers an alternative to fiat currencies, which are the standard currencies issued by governments and central banks. Instead of deriving their value from government declarations, anti-fiat assets often have intrinsic value or are based on decentralized systems like blockchain technology.
Prior to Donald Trump’s inauguration as President, crypto investors were anticipating the crypto market to reach new highs. This was due to the President’s support of the industry during his campaign, including his attendance and keynote speech at Bitcoin 2024. The next few months were wildly different to anticipation with the President and his family launching proprietary meme coins, leading some to question the seriousness of their commitment to the industry.
As a result, Bitcoin fell 20% from Trump’s inauguration to Liberation Day on April 2nd, 2025. Investors flocked to more traditional ‘safe haven assets’, with Gold up nearly 16% in that same time frame. However, since Liberation Day, Bitcoin is up nearly 30%, hovering in the $105-110k region. As the broader market signaled some loss of confidence in the US, Bitcoin saw increased investor interest in the form of a large surge in wallet creation on the back of new retail and institutional demand. Wallet creation is an on-chain activity metric used to measure interest in Bitcoin, and it is pointing to growth, with the number of new wallets up nearly 8% and previously inactive wallets (wallets with no BTC) up 12%.
Interestingly, while gold rallied earlier in the year, it did not participate in the rally after Liberation Day. Bitcoin seemed to be the market’s preferred non-fiat trade over the last 6-7 weeks. One reason for this potential disparity is that Bitcoin remains early in the global investors’ adoption curve whereas gold is many portfolios and this year is driven primarily by a few central banks’ ongoing purchases.
Bitcoin is increasingly taking its place alongside gold as an anti-fiat asset. It still correlates highly to risk-on assets and, as such, is more of a complement rather than a replacement. For investors interested in accumulating Bitcoin but worried about all-time high prices, a more prudent buy-on-dips approach may be warranted. Simple derivatives can also play a role, allowing for the generation of income while waiting for such an entry point. Please reach out to discuss how.
DISCLOSURES
The information provided is for educational purposes only. The views expressed here are those of the author and may not represent the views of Leo Wealth. Neither Leo Wealth nor the author makes any warranty or representation as to this information’s accuracy, completeness, or reliability. Please be advised that this content may contain errors, is subject to revision at all times, and should not be relied upon for any purpose. Under no circumstances shall Leo Wealth be liable to you or anyone else for damage stemming from the use or misuse of this information. Neither Leo Wealth nor the author offers legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. Past performance is no guarantee of future results.
This material represents an assessment of the market and economic environment at a specific point in time. It is not intended to be a forecast of future events or a guarantee of future results.
Cryptocurrency is a digital representation of value that is completely derived by market forces of supply and demand, and they are more volatile than traditional currencies. Cryptocurrencies are not covered by either FDIC or SIPC insurance. Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of cryptocurrency.
Purchasing cryptocurrencies comes with a number of risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, cryptocurrency markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing.
