The legendary bond investor believes gold’s rally has room to run as central banks increase holdings.
Goldman's stagflation basket has surged nearly 20% this year, outperforming bitcoin, U.S. stocks, and even gold.
Rising gold prices and strong bitcoin ETF outflows have pushed gold ETFs ahead as the precious metal prices hit record.
As Bitcoin (BTC) struggles amid the latest crypto market pullback – failing to decisively break past the $84,000 resistance – gold (XAU) continues its impressive rally, soaring to a record high of $3,000 per ounce on March 14. Bitcoin Gets Outshined By Gold 2025 has started on a shaky note for the world’s largest cryptocurrency. BTC is down over 10% year-to-date (YTD), falling from approximately $94,000 on January 1 to around $84,000 at the time of writing. On the flip side, gold has surged nearly 13% in the same period. Related Reading: Bitcoin Needs Weekly Close Above This Level To Confirm Market Bottom, Analyst Says Market analyst Northstar shared the following chart on X yesterday, illustrating the BTC-to-gold ratio over the past 12 years. According to the chart, BTC is beginning to break below a critical support line that has held strong for more than a decade. If Bitcoin sustains price action below this support line for several weeks or months, it could signal the end of the current crypto bull run. BTC’s underperformance against gold is also evident in the contrasting capital flows into BTC and gold exchange-traded funds (ETFs). According to data from the World Gold Council, US-based spot gold ETFs have attracted inflows exceeding $6 billion YTD. Globally, spot gold ETFs have seen more than $23 billion in inflows. Meanwhile, data from SoSoValue indicates that US-based spot BTC ETFs have experienced nearly $1.5 billion in net outflows YTD. This sharp contrast in capital movement reflects a shift in investor strategy from risk-on to risk-off assets. Several factors may explain investors’ growing aversion to risk-on assets, including US President Donald Trump’s new trade tariffs, the US Federal Reserve’s (Fed) hawkish monetary policy, and the recent stock market rout. Is The Crypto Bull Run Over? BTC’s underperformance relative to gold casts doubt on the longevity of the current crypto bull market. The total crypto market cap has shed over $600 billion since the start of the year, now standing at approximately $2.8 trillion. Related Reading: Bitcoin To Bottom Around $70,000? Arthur Hayes Says Correction ‘Very Normal’ In A Bull Market Renowned gold advocate Peter Schiff argues that BTC has already been in a bear market for the past three years. In an X post, Schiff stated: One Bitcoin now buys 27.7 ounces of gold. At its peak in 2021, one Bitcoin bought 36.3 ounces of gold. That means that in terms of gold, which is real money, the price of Bitcoin has fallen by 24%. So Bitcoin has been in a stealth bear market for the past three and a half years. That said, positive macroeconomic developments could still turn the tide in BTC’s favor. For example, US inflation appears to be cooling, which may pressure the Fed to pivot toward quantitative easing and boost market liquidity – a potential boon for risk-on assets. Likewise, a breakdown in the US dollar index could reignite optimism for assets like stocks and cryptocurrencies. At press time, BTC trades at $84,902, up 3.8% in the past 24 hours. Featured image from Unsplash, charts from X and TradingView.com
Gold rallies on strong ETF inflows, geopolitical uncertainty, and market volatility.
The yellow metal has risen as stocks (and bitcoin) have crumbled over the past few weeks.
US reserves status quo: Gold, oil and the emerging role of Bitcoin The US government has long relied on gold and oil as reserve assets, but with the growing institutional adoption of Bitcoin (BTC), its potential role as a strategic reserve has increased substantially. This possibility and potential of the Bitcoin strategic reserve have seen a major tailwind as the new administration took charge in the US in January 2025.While gold has historically backed monetary systems and oil remains a key economic and security asset, Bitcoin represents a new kind of digital reserve that challenges traditional financial paradigms. The United States holds substantial reserves in gold and oil, but its Bitcoin holdings are comparatively small and primarily acquired through asset seizures. As of the third quarter of 2024, the US holds approximately 8,133.46 metric tons of gold, valued at around $789. 87 billion (on March 8, 2025), making it the largest sovereign holder of gold reserves. These reserves have historically been used as a hedge against economic uncertainty and to back the dollar before the gold standard was abandoned in 1971.In the case of oil, the US maintains a Strategic Petroleum Reserve (SPR), which, as of August 2024, holds around 372 million barrels. The SPR was established in the 1970s in response to the oil crisis and is valued at approximately $28 billion at current market prices. These reserves manage supply disruptions, control inflationary pressures, and stabilize energy markets during geopolitical crises.Bitcoin, unlike gold and oil, is not an official reserve asset, but the US government possesses a significant amount through confiscations. Estimates suggest the government controls roughly 200,000 BTC, worth around $15.90 billion at a Bitcoin price of $79,515 (as of March 10). However, unlike gold and oil, these holdings are not stored as strategic reserves but rather as assets pending auction or liquidation by the Department of Justice and the US Marshals Service. Liquidity and market dynamics of gold, oil and Bitcoin Gold, oil and Bitcoin each exhibit unique liquidity and market dynamics, with gold being the stablest, oil driven by geopolitical factors and Bitcoin characterized by high volatility and 24/7 accessibility.The depth of liquidity of an asset in a market is an extremely important indicator of the asset’s health. Typically, the higher the liquidity, the better the options investors have around pricing and risk management. Let’s understand how gold, oil and Bitcoin differ from each other in terms of liquidity and market dynamics:Gold: It remains one of the most liquid financial assets, with daily trading volumes exceeding $200 billion across futures markets, exchange-traded funds (ETFs) and over-the-counter (OTC) trades. Its deep liquidity and universal recognition make it a preferred asset for central banks, institutional investors and governments looking to hedge against inflation and currency fluctuations. While gold’s price varies, it has historically maintained lower volatility than most other assets.Oil: It is traded at immense volumes in both spot and futures markets, with daily future volumes reaching about 1 million barrels globally. Unlike gold, oil’s liquidity is largely tied to its industrial demand and geopolitical developments. The price of oil is highly sensitive to supply chain disruptions, the Organization of the Petroleum Exporting Countries (OPEC) decisions and macroeconomic policies. Given its role in energy markets, oil volatility is much higher than gold, with price swings that can result from political instability, production cuts or major conflicts.Bitcoin: Bitcoin, despite being a relatively new asset, is highly liquid, with daily trading volumes often exceeding $30 billion–$50 billion across global exchanges. While BTC has gained legitimacy among institutional investors, it remains significantly more volatile than gold and oil due to speculative demand, regulatory uncertainty and market structure. Unlike gold and oil, Bitcoin operates on a 24/7 trading cycle, making it unique in terms of accessibility and global liquidity. Storage and security concerns for reserve assets Storage and security concerns are crucial for any reserve asset, with each asset presenting unique challenges and costs.Gold: It is typically stored in highly secure facilities such as Fort Knox, the Federal Reserve Bank of New York and other vaults worldwide. The cost of storing gold varies, but large-scale sovereign reserves require substantial security infrastructure, transportation costs and insurance. Additionally, physical gold is vulnerable to theft and requires constant auditing to ensure authenticity and weight accuracy. Plus, custody fees for institutions storing gold in vaults range from 0.10% to 0.50% per year, depending on the storage provider.Oil: Unlike gold and Bitcoin, oil presents logistical challenges as it must be stored in underground salt caverns, refineries or tanker fleets. The cost of maintaining the Strategic Petroleum Reserve requires billions of dollars in infrastructure, maintenance and security. Moreover, oil storage is subject to depreciation due to environmental conditions, evaporation and contamination risks, making it more expensive to maintain than gold or Bitcoin.Bitcoin: Bitcoin storage differs fundamentally, as it is a digital asset. Governments and institutions typically use cold storage wallets and multisignature security to protect their holdings. While Bitcoin custody does not require physical storage facilities, cybersecurity risks such as hacking, private key mismanagement and regulatory oversight present major challenges. Institutional-grade custody solutions like BitGo, Fireblocks and Coinbase Custody charge anywhere from 0.05% to 0.25% per year, significantly lower than gold storage costs. However, the irreversibility of Bitcoin transactions increases the risks associated with mismanagement or unauthorized access. Strategic and economic role of reserve assets Gold, oil and Bitcoin each play strategic roles in global economics, with gold as a hedge, oil influencing geopolitical stability, and Bitcoin emerging as a decentralized asset for inflation protection.All of these assets have gained strategic and macroeconomic significance over time. Their narrative with relevance to the broader capital markets is perhaps what is needed to drive investors’ interest. Gold: Gold’s strategic role in the global economy dates back thousands of years, serving as a universal store of value and a medium of exchange. The US formally tied its currency to gold in the Bretton Woods system (1944–1971), which established the dollar as the world’s reserve currency backed by gold. Even after the US abandoned the gold standard in 1971, gold remained a key strategic asset held by central banks worldwide as a hedge against currency devaluation and inflation.Oil: It has evolved into an indispensable economic and security asset, with its price fluctuations directly impacting inflation, consumer spending and geopolitical stability. The formation of OPEC in 1960 and the subsequent oil crises in the 1970s demonstrated oil’s ability to drive inflation and shape economic policy. The petrodollar system, in which oil transactions are settled in US dollars, has further solidified oil’s role in global finance, ensuring sustained demand for the dollar and influencing US foreign policy.Bitcoin: BTC’s potential as a reserve asset lies in its decentralized nature, fixed supply (21 million BTC) and resistance to monetary debasement. Unlike gold and oil, which require extensive infrastructure, Bitcoin can be transferred globally in minutes and stored at near-zero cost. As institutional adoption grows, Bitcoin’s strategic value as a hedge against inflation and government debt is increasingly recognized. The future of US government’s Bitcoin policy Policy moves suggest that the establishment of a strategic Bitcoin reserve could position it alongside traditional assets like gold and oil in the future.In January 2025, President Donald Trump signed an executive order titled “Strengthening American Leadership in Digital Financial Technology,” establishing the Presidential Working Group on Digital Asset Markets to explore the creation of a national digital asset stockpile. Building upon this initiative, on March 7, President Trump signed another executive order to create a “Strategic Bitcoin Reserve” and a “US Digital Asset Stockpile,” aiming to position the US as a leader in the cryptocurrency space. These reserves will be funded exclusively through cryptocurrencies seized during law enforcement operations, ensuring no taxpayer funds are utilized.However, the reserve will be funded using cryptocurrencies already held by the government, primarily obtained through asset forfeitures rather than through new government purchases.This strategy has had mixed reactions. While some view it as a positive step toward embracing digital assets, others express concern over the lack of new investments and the potential implications of using forfeited assets. As of March 10, 2025, Bitcoin’s value declined by more than 5% to approximately $79,515, reflecting market disappointment over the reserve’s funding approach. Looking ahead, the US government’s Bitcoin policy is likely to continue evolving. The Presidential Working Group is expected to provide recommendations by July 2025, which could influence future regulatory frameworks, investment strategies and the integration of digital assets into the broader financial system. As global interest in cryptocurrencies grows, the US may further refine its policies to balance innovation with security and economic stability alongside traditional assets such as gold and oil, which remain integral to the nation’s financial strategy.
Gold-backed tokens have enjoyed a resurgence in activity recently as gold prices hit record highs.
The Bitwise Diaman Bitcoin & Gold ETP (BTCG), which commenced trading on Euronext Paris and Amsterdam on Thursday, replicates the Diaman Bitcoin and Gold Index
The price of gold is up nearly 11% so far in 2025 and 43% over the past 12 months.
Brian Armstrong, the CEO of Coinbase, has recently made an audacious statement regarding Bitcoin that has caused quite a stir in the crypto industry. He recently proposed that Bitcoin could be regarded as “somewhat of a meme coin,” which sparked a debate among enthusiasts, analysts, and investors. Related Reading: XRP Bulls Return—Will This Be the Breakout to $3? The Power Of Collective Belief Like meme currencies, Armstrong pointed out that the value of Bitcoin is essentially derived from popular or collective belief. He explained that unlike conventional assets, Bitcoin lacks inherent value connected with actual objects or direct use. Instead, its value is swayed by societal trust and the shared perception of its significance. He also likened Bitcoin to the US dollar, noting that although the dollar’s value has persisted mostly due to mass acceptance and faith in its purchasing power, and it is not connected to the gold standard. This comparison highlights Bitcoin’s status as a store of value rather than a commodity with inherent worth. The Emergence Of Meme Coins Armstrong did not intend to undermine Bitcoin’s credibility; however, his statements underscored the expanding influence of meme coins. Shiba Inu (SHIB) and Dogecoin (DOGE) are two cryptocurrencies that have amassed substantial followings despite possessing minimal fundamental utility. On memecoins… Memecoins have generated a lot of buzz recently, and I’ve gotten some questions on how I think about them. I am personally not a memecoin trader (beyond a few test trades), but they’ve become hugely popular. Arguably, they’ve been with us since the beginning –… — Brian Armstrong (@brian_armstrong) February 19, 2025 For example, Dogecoin, which originated as a joke, experienced a price increase of over 15,000% in 2021 as a result of social media publicity and endorsements from prominent figures such as Elon Musk. Shiba Inu reached an all-time market cap of around $40 billion. This trend is a reflection of how sentiment and viral appeal can push asset valuation up, much like what Armstrong suggests applies to Bitcoin. Bitcoin’s Status Remains Unchallenged Armstrong agreed that, in spite of the comparison, Bitcoin is still the most well-known cryptocurrency. The crypto continues to dominate institutional adoption, regulatory discussions, and long-term investment strategies. Meanwhile, the legitimacy of Bitcoin has been strengthened even more by the trust big financial firms like BlackRock and Fidelity have in the crypto asset. Its limited supply of 21 million coins and decentralized nature also sets it apart from the typical meme coin phenomenon. Related Reading: Solana Faces Double Trouble: 55% Network Drop And Price Woes A Conversation Far From Over Armstrong’s statement has fueled discussions about how cryptocurrencies derive their value. Some critics argue that equating Bitcoin to a meme coin undermines its role as “digital gold,” while others believe it accurately describes the evolving nature of financial assets in the internet era. Featured image from PC World, chart from TradingView
Bitcoin (BTC) four-year compound annual growth rate (CAGR) has declined to 14.5%, the lowest rate on record. However, despite the slump, the premier cryptocurrency has given better returns than gold and stocks. Bitcoin CAGR Drops To Lowest Rate Ever Over the past year, BTC has experienced significant price action, setting multiple all-time highs (ATHs) despite the US Federal Reserve’s (Fed) hawkish stance, which included raising interest rates to curb inflation. Data from CoinGecko shows that BTC has surged 88% over the past year. Related Reading: Bitcoin Dominates 2024, Outperforms Gold And Major Indices – Details Despite its strong performance in 2024, BTC’s four-year CAGR has now fallen to an all-time low of 14.5%. Market analyst Mark Harvey shared the following chart on X illustrating the cryptocurrency’s declining four-year CAGR. For the uninitiated, the four-year CAGR represents the average annual growth rate of an asset over four years, accounting for compounding effects. It helps assess long-term performance by smoothing out short-term fluctuations. Harvey, however, remains optimistic that BTC’s CAGR will not stay at this low level for long. Responding to a comment on his post, he agreed that the cryptocurrency could soon see an explosive upward move. While BTC’s 14.5% four-year CAGR is its lowest on record, it still surpasses the returns of gold and stocks. According to data from Checkonchain, the four-year CAGR for gold, silver, the S&P 500, Nasdaq, and the US dollar has ranged between 4% and 13%. That said, BTC’s four-year CAGR pales in comparison to some of the other large-cap cryptocurrencies. For instance, Solana (SOL) offered a CAGR of 118%, while XRP gave 49%. Only Ethereum (ETH) was ranked below BTC with a CAGR of just about 8%. Is BTC On Track To Replace Gold? At the time of writing, BTC commands a total market cap of slightly more than $1.9 trillion, while gold’s market cap is almost 10 times greater, around $19 trillion. While there is still a lot of room to grow for BTC, experts opine that it won’t be long before the ‘digital gold’ starts chipping away at gold’s dominance. Related Reading: Analyst Backs Spot Bitcoin ETFs To Surpass Gold ETFs In Cumulative Net Inflows In a recent client note, analysts at trading firm Bernstein predicted that BTC is on track to replace gold in as little as 10 years. The note stated that BTC is slated to assume gold’s role as a reliable safe-haven asset. As Bitcoin adoption grows, an increasing number of financial experts are envisioning a future where the cryptocurrency rivals gold. Recently, Matthew Sigel, Head of Digital Assets Research at VanEck, emphasized BTC’s potential to become a global monetary standard. Most recently, veteran trader Peter Brandt highlighted BTC’s increasing strength against gold. At press time, BTC trades at $97,804, up 1.7% in the past 24 hours. Featured image from Unsplash, Charts from X and TradingView.com
There has been a significant shift in how closely Bitcoin (BTC) moves alongside traditional equity indices compared to earlier months. The correlation with the Nasdaq and the S&P 500, which had been relatively strong through much of 2024, shows a slight but consistent decline going into late 2024 and 2025. Part of the reason for […]
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A well-known analyst made an intriguing assumption about the rise of XRP, saying that it could potentially outdo the Philadelphia Gold and Silver Index. Egrag Crypto predicted that XRP could rise by 1,000% against the gold and silver index as the analyst sees the crypto replicating a run it made in 2017. Related Reading: Dogecoin To $1.35? Analyst Predicts Milestone ‘Within 70 Days’ A Looming Crypto Run In a post, market analyst Egrag Crypto noted that indicators are showing that the altcoin could potentially make a bull run similar to what it did in 2017, saying that it could have a big run that would allow it to outperform the Philadelphia Gold and Silver Index. “XRP / XAU: 1000% Possible Candle?” the prominent analyst said in his X account. #XRP / #XAU: 1000% Possible Candle? ???? Not many analyze the #XRP / #XAU pair, but the chart looks primed for a bounce! Let’s break it down: 1⃣Understanding the Pair ???? ????This analysis focuses on #XRP / #XAU, not against the US Dollar. ????If #XAU decreases in #USD terms, the… pic.twitter.com/5bgkp2G64U — EGRAG CRYPTO (@egragcrypto) February 10, 2025 Egrag analyzed the performance of XRP against the Philadelphia Gold and Silver Index by showing the XRP/XAU pair, which represents the coin’s market capitalization, versus the index. “If XAU decreases in #USD terms, the price of XRP in terms of #XAU will increase, impacting its dollar value directly,” the market analyst explained. Current Setup Mirrors 2017 Rally Egrag added that the current XRP’s condition might be similar to that of its 2017 run. “I theorize that the three green candles we saw in 2017 have been replicated, albeit with a different degree of growth. We are currently in a ranging mode; the arrow chart suggests we may stay in this range if current price action aligns,” the analyst noted. For clarity, the gold and silver index is being traded on the Philadelphia Stock Exchange, which tracks the stocks of 30 precious metal mining firms. Moreover, this index trades with the ticker XAU, which is the same ticker for gold ounces. XRP Could Hit $28.5 Egrag said in its previous run in 2017, the pattern allowed XRP to soar by 1,000% in the XRP/XAU pair, saying that at the moment, the pair is being traded at $893.9 million. The figure was obtained by dividing the altcoin’s current market capitalization of $149.64 billion by the current price of the Philadelphia Gold and Silver Index of $167.39. The market analyst believed that if XRP would repeat the 1,000% spike while $167.39 is the price of the index, it would push the price of the XRP/XAU pair to $9.83 billion. With such value, the XRP market capitalization would be at $1.64 trillion, supposing the index remains at $167.39, leading to XRP being traded at $28.5. Related Reading: Bitcoin Whales Accumulate—Will This Push BTC Toward $100K? Altcoin Bounces Off Egrag noted that XRP price versus XAU seems to have bounced beyond the equilibrium phase, recovering from a massive collapse this month that saw XRP slide to $1.7. “Nice Bounce: #XRP / #XAU has bounced forcefully from the equilibrium stage. A similar bounce occurred at the 7 EMA (Exponential Moving Average), indicating bullish momentum,” the market analyst said in a post. Featured image from Gistly, chart from TradingView
Gold’s price dropped while risk assets rose amid speculation Trump’s reciprocal tariffs are no more than a negotiating tool.
Major financial institutions are raising their gold price forecasts due to growing trade war fears and central bank accumulations.
The European Central Bank (ECB) may reconsider its relationship with any European national bank that adds Bitcoin to its reserves, according to ECB board member Piero Cipollone. In a Feb. 6 interview, Cipollone suggested that if a national bank integrates Bitcoin into its holdings, the institution would need to assess the risks associated with its […]
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BTC struggles amid weak on-chain activity while gold shines bright ahead of the pivotal U.S. nonfarm payrolls report.
The precious metal has rallied nearly 10% so far this year while most top cryptocurrencies struggled to stay in the green.
Traders have been loading the yellow metal on U.S.-bound planes. Investment banking giant JPMorgan plans to deliver $4 billion of gold to New York this month.
BTC takes a breather as Trump's tariff threat bodes well for gold, and the uptick in Tokyo inflation supports BOJ rate hikes.
Matthew Sigel, Head of Digital Assets Research at VanEck, has recently made comments regarding the potential of Bitcoin to become a global monetary standard, similar to gold, which have sparked controversy. This viewpoint is gathering momentum, particularly as the debate regarding a US Strategic Bitcoin Reserve intensifies. Related Reading: Bitcoin Faces Major Deleveraging – Analyst Explains Price Crash Below $100K The Future Of Finance: The Role Of Bitcoin Sigel stated that Bitcoin has the potential to significantly influence the future of global finance. He asserts that the establishment of a crypto strategic reserve by the United States government, with an estimated quantity of 1 million BTC, could establish the leading crypto asset as a new form of currency. This concept is reminiscent of historical periods in which nations accumulated gold in order to fortify their economic capabilities. Sigel posits that this could catapult the US to become the flag-bearer of the new era of finance. The gold standard once defined reserve assets. Now, Bitcoin presents the opportunity to converge on a ‘Digital Standard’ for money. It could very well echo gold’s role in reshaping global finance. pic.twitter.com/e1ogPe947R — matthew sigel, recovering CFA (@matthew_sigel) January 10, 2025 Gold Vs. Bitcoin: Lessons From History The comparison of crypto to gold is not new, but it has gained traction recently as more governments experiment with digital currencies. Gold is often seen as a safe haven and a reliable store of wealth, but Bitcoin offers unique benefits that no other commodity does. It is essentially a digital asset, thus unlike gold, transfers are fast and considerably more portable. This digital nature makes it less vulnerable to physical theft and facilitates cross-border transactions. While mining helps to produce gold, Bitcoin is intrinsically rare since its supply is limited at 21 million coins. For those trying to offset economic uncertainty and inflation, this planned scarcity could make BTC a tempting substitute. Global Perspectives & Reactions There is a growing global buzz about the potential of Bitcoin. Due to recent political shifts in the US, countries like El Salvador have made Bitcoin legal tender, and leaders in other nations are trying to put similar policies into place. However, given the erratic character of Bitcoin and the steady purchasing power of gold, some economists believe that this movement should be rejected. Related Reading: Bitcoin Sentiment Plummets To Neutral: Reversal Signal? Although Bitcoin offers contemporary benefits like decentralization and immunity to governmental intervention, its price volatility, according to critics, may be a barrier to its widespread adoption as a medium of exchange. As a result, the two assets differ in the crucial factors that investors and decision-makers need to take into account. Sigel’s words reflect a new interest in how Bitcoin might reconfigure financial systems around the world. As conversations continue about whether it will eventually become a global standard, standing alongside gold, both proponents and detractors will be watching how this story develops over the coming years. Perhaps the future of money depends on how these two assets evolve and interact in an increasingly digital economy. Featured image from Pexels, chart from TradingView
Investors are boosting Bitcoin allocations as a hedge against geopolitical uncertainty, the bank said.
If there’s one crypto asset that is expected to make it big this 2025, it has got to be Bitcoin. The premiere crypto has demonstrated remarkable success as it ushers in 2025. Registering solid numbers in the last few weeks, analysts have high hopes that it can make further breakthroughs. In fact, based on latest research, Bitcoin has surpassed conventional asset classes such as gold, cementing the optimism behind the coin. The digital coin’s success this year is unsurprising, attributable to several advantageous market conditions, including Donald Trump’s victory in the recent US elections. Related Reading: Bitcoin Remains Below $100,000: Is the Bull Market Over or Just Taking a Breather? According to a report from Creative Planning, and from a post on Twitter/X by Charlie Bilello, Bitcoin’s performance dwarfed the results of other asset classes, with gold offering returns of just 26%. The same data shows the Nasdaq 100 gained 25%, US large caps 24%, mid-caps 13%, and convertible bonds 10%. Although proving showing decent numbers, Bitcoin is still a volatile asset with dramatic price swings. With the exception of Long Duration Treasuries, every major asset finished higher in 2024 with Bitcoin leading the way for the second straight year.https://t.co/l5IYmkf6Ih pic.twitter.com/TyStoT73rp — Charlie Bilello (@charliebilello) January 1, 2025 Bitcoin Edges Gold And Other US Indexes Although Bitcoin has received a few criticisms and was the subject of regulatory actions, it remains a top-performing asset class. Since 2011, BTC has led all other asset classes, except for at least three years where it yielded negative returns to holders. For example, in 2018, Bitcoin’s yield was at -73%. But most of the time, Bitcoin was a consistent performer, and there were even some instances when yields topped 1,000%. According to the same chart, Bitcoin even offered yields of 1,437% in 2011, even beating long-term treasuries with a “modest” 34%. There were instances when Bitcoin’s yield disappointed its holders and investors. If we check the asset’s yield this year, we’ll discover that it’s lower than last year’s 156% return. Last year, Bitcoin was also the top performer among major asset classes, also beating gold. Bitcoin Shows Strength, But Volatility Remains While most of the past 14 years have seen great performance of Bitcoin against other asset classes, its volatility still raises questions. Owning Bitcoin or other cryptocurrencies always has hazards related to erratic price swings and even policy announcements. Related Reading: Wealth Mentor Predicts XRP Path To $100 – Should You Invest Now? Bitcoin’s price has more than doubled since starting 2024 within the $40k range. As of press time, Bitcoin trades between $95k and $97k. Last December 5th, Bitcoin’s price hit the $100k mark before dipping below $100k again after one day. Ether also joined the surge and volatility, with its nearly 50% gain for the year, and it’s currently trading in the $3,400 range. Featured image from Newsbit, chart from TradingView
MicroStrategy continues its Bitcoin (BTC) buying spree. The business intelligence firm scooped 2,138 BTC for $209 million in its latest purchase, pushing its total holdings to 446,400 BTC. MicroStrategy Ends 2024 With Another Bitcoin Buy In an announcement made today, the US-based company stated it had further bolstered its BTC reserves with a fresh 2,138 […]
Canadian-based gold tokenization firm Matador Technologies wants to diversify away from Canadian dollars and is adding Bitcoin to its balance sheet.
U.S. spot-listed bitcoin ETFs currently have an AUM of $120 billion compared to gold's $125 billion.
On Dec. 16, US spot and derivative Bitcoin ETFs collectively broke $129 billion in net assets, surpassing gold ETFs for the first time.
Amid its historic price action, Bitcoin (BTC) has quietly hit a new all-time high (ATH) against gold. The insight was highlighted by veteran trader Peter Brandt in an X post. Bitcoin Hits New ATH Against Gold: Room For Further Growth? Brandt’s analysis revealed that the BTC-to-gold ratio has reached a new ATH of 32.19 ounces of gold per BTC. In his post, the seasoned trader also took a subtle dig at long-time gold advocate Peter Schiff, a vocal Bitcoin critic. Related Reading: Bitcoin Price Surge In 2024 Not Enough To Beat Gold’s Risk-Adjusted Returns – Details Here For those unfamiliar, the BTC-to-gold ratio measures Bitcoin’s performance relative to gold, showing how many ounces of gold are needed to purchase one whole BTC. This metric underscores Bitcoin’s growing dominance as a store of value. Brandt further noted that the next target for Bitcoin is 89 ounces of gold per BTC, suggesting significant room for Bitcoin to grow against the precious metal. This aligns with the broader narrative within the crypto industry that Bitcoin is poised to challenge gold’s $15 trillion market cap. It’s worth recalling that Brandt previously predicted Bitcoin would rise 400% relative to gold by 2025. Back in October, he projected that BTC could reach the equivalent of 123 ounces of gold based on historical market patterns. A recent report by trading firm Bernstein added weight to this narrative, forecasting that Bitcoin is on track to replace gold as the preferred safe-haven asset within the next 10 years. As of now, BTC boasts a market cap of $2.11 trillion, steadily closing in on gold’s dominance. Similar forecast was made by one of the earliest Bitcoin advocates, Eric Voorhees. The CEO of ShapeShift crypto exchange made a bold prediction, saying that unlike gold or oil, BTC’s digitally-programmed supply scarcity will drive its price upwards. Additionally, Nate Geraci, President of the ETF Store, predicts that Bitcoin-based exchange-traded funds (ETFs) could surpass gold ETFs in total assets under management within the next two years. Supporting this outlook, data from SoSoValue indicates that cumulative net inflows into all spot BTC ETFs currently stand at $35.6 billion, compared to gold ETFs, which sit at $55 billion. Implications Of A Potential BTC Strategic Reserve With BTC surpassing the pivotal $100,000 price level, speculation has grown regarding President-elect Donald Trump’s approach to digital assets. Industry experts believe that Trump may prioritize Bitcoin adoption early in his second term, further boosting BTC’s price. Related Reading: BlackRock Declares Bitcoin The New ‘Gold Alternative’ – Here’s Why Data supports this optimistic view. According to crypto analyst Ali Martinez, the number of BTC whales – wallet addresses holding more than 1,000 BTC – has skyrocketed since Trump’s election victory. This optimism is further fuelled by speculation surrounding a potential US strategic Bitcoin reserve. Prominent financiers argue that if the US were to create such a reserve, China and other nations would likely follow suit to remain competitive. At press time, BTC trades at $106,909, up 3.7% in the past 24 hours. Featured image from Unsplash, Charts from X and TradingView.com
The Bitcoin to gold ratio hit a new ATH at 40 gold ounces per BTC as the Bitcoin price peaked above $106,000 on Dec. 16.