💰 Gold and Bitcoin “hand in hand” to their peaks 📈💥

📍 Gold and Bitcoin, traditionally viewed as contrasting assets—one a safe haven and the other volatile and speculative—achieved record highs in tandem. Gold surged to $2,141 per ounce, attributed to geopolitical tensions and anticipation of central bank rate cuts. The US manufacturing index, signaling broader-than-expected contraction, further bolstered gold purchases. Bitcoin, dubbed digital gold, surged to $69,200, propelled by factors like the entry of institutional investors via ETFs and periodic halving of new coin creation, expected in April.

📍 Gold’s rally, lasting 16 months and spurred by geopolitical risks, surpassed previous highs, highlighting its role as a hedge against uncertainty. Anticipation of Fed rate cuts enhanced its appeal. Buyers included macro funds and central banks, the latter persistently accumulating gold even during rate hikes.

📍 Bitcoin’s surge began in 2023, reaching a 350% growth from around $20,000. Despite past criticisms of speculation, its allure persisted, buoyed by institutional adoption via ETFs and CoinShares reporting over $7.5 billion inflow since ETF inception.

📍 The halving mechanism, reducing new coin creation periodically, constrains Bitcoin’s supply, potentially increasing its value amid demand. Both gold and Bitcoin benefited from expectations of rate cuts, making them attractive investments amidst low-yield environments.

📍 In conclusion, the simultaneous record highs of gold and Bitcoin underscored their roles as alternative investments during economic uncertainty. While gold surged on geopolitical tensions and rate cut expectations, Bitcoin saw institutional adoption and benefited from halving dynamics. Both assets capitalized on market sentiment favoring safe-haven assets amid low interest rates.

Source: Repubblica