Expert analysts believe that the present economic situation has left investors looking for better ways to protect their wealth.
By Mayowa Adebajo
Edited by Julia Sakovich
Updated
2 mins read
The BTC/Gold index rose by 12% on November 6, 2024, following Donald Trump’s recent victory in the US presidential election. This surge was particularly remarkable in that it was Bitcoin’s BTC $98 727 24h volatility: 0.6% Market cap: $1.96 T Vol. 24h: $182.43 B largest single-day rise against gold since February 2022.
The metric suggests that Bitcoin may now be more popular than gold among investors. However, the unexpected part is that the gravity of the latest jump in the BTC/Gold ratio means that this may be more than just a reaction to political news.
Expert analysts believe that the present economic situation has left investors looking for better ways to protect their wealth. This means that a rotation of capital from gold to Bitcoin might already be playing out.
For long, gold held the reputation for being a “safe haven,” investment tool. However, Bitcoin’s recent performance suggests it may have displaced the yellow metal from that status.
Citing data from TradingView, CoinDesk confirms that the BTC/Gold index had been in a downtrend for much of 2024. That is, with gold being more favored. However, the trend eventually got broken on November 6, signaling a renewed upward trend for Bitcoin over gold.
Crypto analyst Noelle Acheson noted, “The downtrend favoring gold appears to be reversing, as investors now seek safer avenues in assets like Bitcoin.”
Without a doubt, Trump’s win has brought about a bright outlook to crypto. His repeated pro-crypto advocacies in the past have given hope to investors, who now expect his administration to create a regulatory framework favorable to digital assets.
The wider implication of this is that the expected regulatory clarity under Trump’s administration could potentially lead to big capital flowing into the crypto sector. Ultimately, this is expected to boost Bitcoin’s value.
Meanwhile, experts are also sharing in this optimism. They predict that Bitcoin could reach an impressive $80,000 by the end of 2024. That is, as investors shift further away from gold to Bitcoin.
Moreover, gold is expected to face even more pressure due to anticipated high interest rates under Trump’s presidency. So, the attraction to Bitcoin will potentially grow stronger.
While the future remains uncertain, the growing interest in Bitcoin as a hedge asset signals a possible transformation in investor preferences, especially under a US administration that may support cryptocurrencies more openly.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
