The competition between Bitcoin and Gold has always attracted attention. Recently, gold prices broke records, while Bitcoin’s performance remained below expected. So, what are the reasons behind this situation? Let us closely examine this contention between Bitcoin and Gold.
Bitcoin’s struggle against gold
Although Bitcoin is known as “digital gold ında in recent years, it has difficulty maintaining its value against gold. According to Analyst Peter Brandt, the value of Bitcoin tends to decline. Brandt says Bitcoin creates a double hill formation in front of the gold, and that is worrying. Especially as economic uncertainties increase, investors turn under.
After gold reached 38.5 per ounce in January, Bitcoin’s value fell rapidly. This decrease has declined Bitcoin’s ratio against gold to 33. Currently, this rate is around 33.85. This clearly shows Bitcoin’s weakness against gold.
Why is Bitcoin behind?
There are several main reasons for Bitcoin left behind. First of all, gold has been considered a safe harbor for centuries. Gold in economic crises and geopolitical uncertainties remains value. In addition, central banks see gold as a means of storing value. Bitcoin has not yet reached this status.
Donald Trump’s 25 %customs duties, such as 25 %customs duties brought to the import of steel and aluminum, also increase the value of gold. Such steps increase the demand for gold by triggering inflation concerns. Bitcoin, on the other hand, has not yet provided the same confidence in such economic shocks.
Will Bitcoin catch gold?
Bitcoin’in gold to catch the issue of curiosity. Some analysts predict that Bitcoin can reach $ 500,000 by seizing the market share of gold. In particular, the success of Bitcoin ETFs and the possibility of countries like the United States to evaluate Bitcoin as a reserve support this scenario.
However, Bitcoin needs to first control its volatility. Bitcoin, which is currently traded at the level of 97.8 thousand dollars, carries the risk of falling up to 93.3 thousand dollars. If he receives support from $ 97 thousand, he can re -test the $ 100 thousand level.
Result: Gold is still leading
Although Bitcoin is leading among digital assets, Gold is still a reliable values storage tool. The market value of 19,673 trillion dollars of gold leaves Bitcoin’s $ 1 trillion value. As Peter Brandt points out, Bitcoin needs to adopt more and gain confidence in order to capture the gold.
In short, there is a long way to fully deserve Bitcoin’s title of “digital gold .. Gold continues to be the most reliable harbor in a world with economic uncertainties.
