Gold and bitcoin were 2026's worst assets the midterms just gave them a pulse
Gold and bitcoin spent most of 2026 as the market's two worst bets. The morning after the midterm elections, both are rallying while the dollar slips.
Gold futures (GC=F) jumped more than 3% Wednesday, back above $4,000 an ounce, and bitcoin (BTC-USD) rose nearly 4%, back above $80,000. Silver (SI=F) did even better, gaining about 5%.
The dollar index (DX-Y.NYB) slipped alongside the Democratic sweep of Congress. At its low, it was on track for its biggest drop in more than two months before paring the loss.
That's the debasement trade — the bet that big deficits and easy money chip away at the dollar's value, pushing investors into assets the government can't print. It has been missing in action for most of the year.
Through the end of October, bitcoin and gold were the two worst-performing major assets of 2026, a first for any calendar year, Charlie Bilello of Creative Planning found.
The early election-night selling in tech stocks and bitcoin "quickly reversed," Pictet Asset Management chief strategist Luca Paolini wrote in a note. He said assets tied to the Trump agenda, including bitcoin, "had already corrected by roughly 10% from recent highs in the run-up to the election."
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Gold and bitcoin spent most of 2026 as the market's two worst bets. The morning after the midterm elections, both are rallying while the dollar slips.
Gold futures (GC=F) jumped more than 3% Wednesday, back above $4,000 an ounce, and bitcoin (BTC-USD) rose nearly 4%, back above $80,000. Silver (SI=F) did even better, gaining about 5%.
The dollar index (DX-Y.NYB) slipped alongside the Democratic sweep of Congress. At its low, it was on track for its biggest drop in more than two months before paring the loss.
That's the debasement trade — the bet that big deficits and easy money chip away at the dollar's value, pushing investors into assets the government can't print. It has been missing in action for most of the year.
Through the end of October, bitcoin and gold were the two worst-performing major assets of 2026, a first for any calendar year, Charlie Bilello of Creative Planning found.
The early election-night selling in tech stocks and bitcoin "quickly reversed," Pictet Asset Management chief strategist Luca Paolini wrote in a note. He said assets tied to the Trump agenda, including bitcoin, "had already corrected by roughly 10% from recent highs in the run-up to the election."
$JCT
$ELSA
$APP
