Popular digital and physical gold. These last few weeks (and even more so these last few days), have been very explosive for Bitcoin (BTC) and the cryptocurrency sector. While the BTC price exceeded the $42,000 this Monday, December 4, the prices ofgold have crossed upwards the $2,000. Is a link of correlation between these two assets is being established?
All-time high for gold quoted in dollars: $2,075
If the Troy ounce of the precious metal (approximately 31.1g of pure gold) had touched the $2,000 on a few occasions since 2020, it is the very first time, today December 4, 2023, that the ounce of gold reached the $2,075.
The same day, the king of crypto-assets, Bitcoinhas just reached a peak around $42,150. This is a price record which had not not seen again in 20 months. In fact, we must go back to April 2022 – that is to say 1 month before the UST/Terra disaster (LUNA) and therefore the hardest of the last crypto winter – to find BTC above $42,000.
So, is it a coincidence that these two assets explode upwards at the same time ? More and more experts and analysts are considering a correlation between these two assets. Or, in any case, their anti-correlation compared to government bondsfor which the interest of investors collapses.
Investors Flee From Bonds To Gold, Anticipate A Spot Bitcoin ETF
With its recent annual price peak, Bitcoin has so to speak erased the brunt of crypto winter 2022, where BTC even briefly fell below $16,000 (in December 2022). With almost +145% increase over a rolling year, the leader in crypto-assets has clearly regained momentum, even if its historic high (around the $69,000) is still far away.
According to financial company analysts cited by Zone Bourse, the two assets would have mainly each a favorable factor which would explain their recent bullish jump. THE disenchantment of investors for government bonds (especially US) would benefit the gold metal, while the prospect ofSEC Approval of Spot Bitcoin ETF (Securities and Exchange Commission) would benefit the queen of cryptocurrencies:
“The fall in Treasury yields [américain] and the weakness of the US dollar have (…) caused gold prices to jump. »
Michael Hewson, analyst at CMC Markets
“Optimism continues to grow around the SEC’s anticipated approvals of spot Bitcoin ETFs. (…) Although the SEC delayed [ndlr : une énième fois de plus] decision on current requests until next month [janvier 2024], investors are broadly optimistic that these approvals will be secured, which would pave the way for a new wave of demand. »
James Harte, analyst at Tickmill
Although Bitcoin is regularly compared to digital gold 2.0it would seem immediately that it is mainly the weakness of the US economy which favors the meteoric, and simultaneous, rise of both assets. Because if the role of safe investment millennium of gold works in its favor, as does the anticipation of a Spot Bitcoin ETF promotes interest in cryptocurrency, it is above all the behavior of the American Federal Reserve (the Fed) which is monitored – and is a source of speculations – by economic markets. Because if the Fed stops its crazy increase in key rates for good (or even lower them!), the monetary policy of the United States could also return to the side of money printing (in other words, printing money).