This prompted Deutsche Bank's Jim Reid to conclude that "there also seems to be an increasing demand to use Bitcoin where Gold used to be used to hedge Dollar risk, inflation and other things."

The latest weekly fund flow data confirms this, because even as bitcoin continues to rise amid a surge in institutional buying, with volumes in futures contracts exploding to an all time high

And while offsetting flows between bitcoin (in) and gold (out) would make sense in the context of repositioning (as younger investors buy bitcoin and older investors sell gold), the "cross the stream" moment will kick in when both storm higher.

That's the "Hedging Goldilocks" scenario laid out by BofA's Michael Hartnett, who notes that the biggest threat to the "uber-Goldilocks" base case for 2021, which as a reminder is the following...

a year of vaccine not virus, a year of reopening not lockdown, a year of recovery not recession; 2021 forecast by consensus to be the "uber-Goldilocks"...consensus predicting 5.2% global GDP growth, 3.8% US GDP growth, 1.9% U.S. inflation, 1.2% US Treasury yields