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Highlights
- Bitcoin maintains lead over gold despite gold's record high prices and significant inflows.
- Gold-backed ETFs attract $2 billion in six weeks, capitalizing on gold's 24% gain.
- Bitcoin's lead over gold narrows to around 500 basis points, says Bloomberg analyst.
Bitcoin continues to maintain a lead over gold, even as the precious metal hits record highs. Bloomberg’s senior ETF analyst, Eric Balchunas, has highlighted the narrowing gap between the two assets. Despite the metal’s recent surge and significant inflows into gold-backed ETFs, the crypto’s dominance as a store of value remains evident. The ongoing rivalry between BTC and the yellow metal is fueling debates among investors, which has already received immense traction lately amid economic uncertainties.
Bitcoin Maintains Lead Despite Gold’s Recent Surge
The Bitcoin vs. gold debate was one of the hottest topics in the financial market recently, amid the growing competition between the two assets. Recently, the yellow metal prices hit a new high of $2,530, gaining significant attention.
Meanwhile, Eric Balchunas highlights that investors have poured $2 billion into the SPDR Gold Trust (GLD) ETF in just six weeks, capitalizing on the metal’s 24% gain over the last 6 months. Notably, this rally, according to Balchunas, has crushed the performance of traditional stocks, reflecting the yellow metal’s appeal as a safe haven during economic uncertainties.
However, he noted that BTC has not been left in the dust. The Bloomberg analyst said that the crypto still holds a narrow lead against the precious metal in terms of performance. In addition, he mentioned that while the precious metal is finally reaping the rewards of its recent gains, the crypto’s lead remains intact with a slim margin of around 500 basis points.
The correlation between crypto and metal has gained notable attention from market participants lately. As crypto matures and sees wider acceptance, its role as a store of value is often compared to the metal. Notably, both these assets have emerged as popular choices for those seeking a hedge against the weakening US dollar and economic woes that have weighed on the global market sentiment.
BTC VS Gold: The Continuing Debate
The ongoing debate between Bitcoin and gold as the ultimate store of value has intensified, especially with notable figures like Robert Kiyosaki advocating for investments in both. Kiyosaki and other market analysts suggest that diversifying into BTC, gold, and silver could be a prudent strategy as the US dollar’s value continues to decline.
As the precious metal reaches new heights, BTC’s performance remains closely watched. While the yellow metal has historically been the go-to asset during times of economic turmoil, the crypto’s digital nature and its increasing acceptance in the financial world have positioned it as a formidable contender.
The narrowing gap between the two assets suggests that the “store of value smackdown,” as Balchunas calls it, is far from over. Notably, a flurry of reports also suggests that Bitcoin price will hit an all-time high, following the metal’s surge to a new high.
As of writing, BTC price was up 3.34% to $60,421, with its trading volume declining 22% to $27.65 billion. Over the last 24 hours, the crypto has touched a high of $61,396.33 and a low of $58,416.65, reflecting the highly volatile scenario in the crypto market.
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