How to Trade Gold and Bitcoin After the Stock Market’s Strong Rebound

After a powerful rally in the U.S. stock market, investors might assume it’s time to walk away from “safe-haven” assets like gold and bitcoin. But according to some of Wall Street’s most seasoned voices, that could be a mistake.

In fact, experts say gold and bitcoin may still have room to run, especially as concerns over government spending, national debt, and long-term economic uncertainty continue to loom.

Let’s break down what’s happening in both markets and how investors can navigate the opportunities and risks that come with trading these alternative assets.

Gold: Cooling Off, But Far From Done

After a 35% rally over the past year, gold prices have recently cooled but that doesn’t mean the party’s over. The precious metal, long considered a hedge against inflation, economic instability, and currency devaluation, still has a strong case behind it.

“I couldn’t imagine a better backdrop for gold,” said David Schassler, head of multi-asset solutions at fund manager Van Eck, during CNBC’s ETF Edge.

He pointed to the U.S. economy’s massive debt, excessive spending, and overall policy chaos as conditions that typically benefit gold. And he’s not alone.

💬 David Einhorn Is Betting Big on Gold

Hedge fund veteran David Einhorn of Greenlight Capital agrees. Speaking at the Sohn Investment Conference, he said the U.S. political environment has created a situation where no serious action is being taken on the deficit and that could fuel a deeper reliance on hard assets like gold.

“There’s a bipartisan agreement to do nothing about the deficit until we get to the next crisis,” Einhorn warned.

Both Einhorn and Schassler see gold potentially hitting $5,000 per ounce by 2026] a bullish call that implies significant upside from today’s levels around $3,200/oz.

Key Takeaway for Gold Investors

If you’ve been watching gold with interest, now may be a strategic time to:

• Reassess your portfolio’s exposure to inflation hedges.
• Look beyond short-term dips and focus on long-term fundamentals.
• Consider gold ETFs or gold-mining stock funds to gain broader exposure.

₿ Bitcoin: The “Risky Cousin” That’s Still Climbing

While gold has taken a breath, bitcoin has surged rising nearly 60% over the past year and continuing to push higher with a 10% gain just in the last month.

Schassler calls bitcoin “the risky cousin of gold” a newer, more volatile alternative asset that shares some of the same appeal: it’s decentralized, not tied to a central bank, and considered by some to be “digital gold.”

But make no mistake: bitcoin is still highly sensitive to investor sentiment, often reacting sharply to macro news and stock market swings.

🛡️ How to Reduce Bitcoin Volatility

If you’re curious about bitcoin but worried about the wild price swings, there are new tools that offer built-in protection.

“I’m impressed with what’s happening in the options-based world with ETFs,” said Todd Rosenbluth, head of research at VettaFi.

One example is the Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ). This fund uses options strategies to limit downside risk:

• If bitcoin drops more than 20%, your losses stop there.
• If it rises, your gains are capped, but you’re still exposed to upside.

It’s a smart way to dip into crypto without taking on unlimited risk.

Final Thoughts: Hedging Isn’t Dead

Even with the stock market on the rise, hedging remains an important part of a smart investment strategy. Gold and bitcoin are more than just crisis assets they’re tools that can offer protection, diversification, and potential upside when used wisely.

✅ Gold offers stability and a long history of value.

✅ Bitcoin offers growth potential and a hedge against fiat devaluation.

✅ Options-based ETFs now allow investors to balance both upside and downside in crypto exposure.

As the economy continues to evolve and as Washington wrestles with debt, inflation, and geopolitical risks don’t count out gold and bitcoin just yet. In fact, the best time to build your hedge is before the next crisis hits.