Trump’s Gold Reserve Audit Could Boost Bitcoin Flows
President Donald Trump’s plan to audit the Fort Knox gold reserves could spark major volatility in financial markets, particularly in the gold and digital asset space. According to Copper Research Director Fadi Aboualfa, a thorough audit of gold reserves could lead to increased scrutiny of gold ETFs, raising doubts about their adequacy and creating a domino effect on global liquidity.
Asset Transparency: An Opportunity for Bitcoin
Aboualfa said that if gold ETFs cannot prove their holdings, they could trade at a discount, causing a liquidity drain and forcing investors to seek alternative assets, where Bitcoin could benefit. He noted that the new administration’s tightening of oversight over gold reserves could increase the need for transparency, which digital assets could better serve.
“In this context, the idea of a strategic Bitcoin reserve is gaining traction,” Aboualfa said.
Capital Flows and Impact on Bitcoin
RedStone CEO Marcin Kazmierczak said that while it’s not clear that all of the capital outflows from gold will flow into digital assets, Bitcoin will certainly benefit from the narrative of a digital store of value.
Nansen Research analyst Nicolai Sondergaard said that if there were any discrepancies in the US gold reserves, Bitcoin would become a hedge. “Bitcoin is often referred to as ‘digital gold’ because it has a built-in scarcity, and every transaction is traceable on-chain. This can create a sense of security rather than worrying about whether the gold is actually in a safe,” Sondergaard said.
Bitcoin Strategic Reserve: The US Government’s First Step?
On the idea of building a strategic Bitcoin reserve (SBR), Aboualfa said that although the US Treasury has not made a big move on Bitcoin, there could still be small changes in policy. One of the first steps could be to stop selling Bitcoin seized from federal investigations and instead accumulate it as a form of reserve asset.
Nexo Dispatch analyst Iliya Kalchev said that the Fort Knox audit is not simply to verify the amount of gold but also a political move that could have a strong impact on investor sentiment. “The last time the US conducted a comprehensive gold audit was in the 1950s. If the audit results in a shift of capital flows from gold to Bitcoin, the value of the digital asset will receive a strong boost,” Kalchev said.
Gold Supply Risks and Market Impact
Another factor that is causing concern is the possibility of a disruption in the supply of gold, especially as reports show that large amounts of bullion are being moved from London to New York. This has fueled speculation that the Trump administration could revalue gold at its current market price, instead of the fixed price of $42.22 per ounce established during the Bretton Woods era. If this happens, the value of US reserves could increase from $11 billion to more than $750 billion.
Aboualfa warned that counterparty risk has increased significantly as banks find it difficult to borrow gold due to limited supply. “Delayed deliveries are raising concerns about price volatility between the spot market and ‘unallocated’ gold ETFs, which have no physical backing,” he said.
Bitcoin in a volatile market
Analyst Kalchev noted that gold has reached $2,954 per ounce and is likely to hit $3,000 amid strong central bank accumulation and the impact of new US tariffs. At the same time, Bitcoin is also seeing an increase in value as investors diversify their portfolios.
While the prospect of a Fort Knox audit remains a mystery, its implications could significantly change the investment landscape for gold and digital assets. If the market loses confidence in the transparency of gold reserves, Bitcoin could become a more attractive alternative than ever.
