Crypto News– In the opening days of Q4 2023, the world’s largest cryptocurrency, Bitcoin (BTC), has staged an impressive rally, surging by over 4% and surpassing the $28,000 mark. This substantial move has propelled Bitcoin to break out decisively above its 200-day moving average, setting its sights on the next milestone of $31,000.
Bitcoin vs Gold: Recent Trends Show Bitcoin’s Strength Amidst Gold’s Decline
What makes this Bitcoin rally even more intriguing is its timing. As Bitcoin shines, the price of gold, traditionally considered a safe haven asset, has plummeted to a two-month low. The downward pressure on gold is attributed to the strengthening US Dollar, which has been on the rise.
Despite the various global financial risks that persist, gold has not served as the preferred “safe haven” for investors. The spot gold price dipped to its lowest point in two months, breaching the significant support level of $1,880 per ounce before ultimately closing at $1,848 per ounce last Friday.
The relentless ascent of the dollar index to a 10-month high, driven by concerns surrounding continuously elevated interest rates in the US, has further exacerbated the downward pressure on gold prices. Surprisingly, gold has not experienced a surge in demand as a safe haven asset, even in the midst of the prevailing risk-averse sentiment in financial markets.
This recent development underscores Bitcoin’s growing reputation as a safe haven asset, potentially surpassing gold in this regard. Over the past decade, Bitcoin has been steadily gaining ground on gold, with its price increasing by over 16 times relative to the precious metal.
However, it’s worth noting that gold still maintains a colossal market size, estimated at around $13 trillion, whereas Bitcoin’s market capitalization hovers around $500 billion. To eclipse gold and become the ultimate safe haven, the price of one Bitcoin would need to exceed $700,000, marking a significant milestone on its journey to reshape the global financial landscape.
Leave a comment