Gold and Silver Hit New Record Highs, Will BTC Catch Up Soon?

Bhushan Akolkar
May 20, 2024
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Highlights

  • Geopolitical uncertainty push Gold price closer to $2,500 per ounce.
  • Silver price gives a 11-year breakout eyeing an additional 50% gains ahead.
  • Bitcoin can play catch up soon as it's now formally regulated product trading on Wall Street.

There’s a strong rally in the commodities market with precious metals like Gold and Silver hitting new record highs recently. Gold is grabbing all the limelight in the global financial market, hitting a new all-time high against the USD. As a result, market analysts are keeping a close watch on Digital Gold aka Bitcoin.

Earlier today on Monday, the Gold price rallied to $2,450 per ounce fueled by the ongoing geopolitical developments in Iran and the likelihood of a dovish move by the Fed on interest rates. Another factor driving gold prices is the sustained demand from central banks, contributing to a 30% increase in gold prices this year.

Silver Gives An 11-Year Breakout

Silver (SILVER) remains in the spotlight on Monday as it surged to an 11-year peak surpassing the significant psychological threshold of $30. This rise is attributed to its safe-haven properties, the weakening U.S. dollar, and its industrial utility.

Investors are driving up silver prices, along with other precious metals, seeking assets to hedge against ongoing geopolitical uncertainties.

Looking ahead, silver stands to gain from increasing industrial demand. The Silver Institute’s World Silver Survey report projected a 9% rise in industrial demand this year, fueled by the growing use of silver in renewable energy applications.

In the longer term, investors should monitor a potential move towards the $35 mark. This area may pose resistance due to a key multi-year horizontal line from notable swing highs in 2011 and 2012. A decisive breakout above this level could lead to a retest of the record high at $47.71 set in April 2011.

Will Bitcoin (BTC) Catch Up soon?

Amid the recent silver price rally, the commodity has widened its gap with Bitcoin. Bitcoin is still $500 billion away in order to catch up to Silver’s $1.8 trillion valuation and become the eighth largest global commodity. For the flipping to happen, the Bitcoin price should cross $93,000 provided silver remains stable by that time.

Bitcoin analyst Dylan LeClair previously highlighted that Bitcoin often doubles within months of hitting new highs, especially around halving events.

Galaxy Digital founder and CEO Mike Novogratz predicts that Bitcoin will remain in a “consolidation phase” between $55,000 and $75,000 over the next month, with potential for an increase towards the end of the second quarter.

Traditional markets are hitting new all-time highs, and gold and silver are performing exceptionally well. It’s evident that securing inflation protection has become crucial.

Bitcoin has emerged as a key player. Arguments about its legitimacy are no longer valid, as it is now fully regulated and tradable on Wall Street, says analyst.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.