Gold Reaches Historical Highs and Surpasses Bitcoin by Far

While the price of gold reached a new record above $2,100 per ounce this week, the performance of the precious metal vastly outshines that of Bitcoin. Where gold enters uncharted territory with a relatively stable dollar, Bitcoin still needs to bounce back more than 60% to beat its previous high.

Gold Shines Brighter Than Bitcoin!

For the first time, gold has surpassed the symbolic mark of $2,100 an ounce this week. This historic performance contrasts with Bitcoin, which still caps far from its record, more than 60% below. 

While Bitcoin maintains its appeal among investors, another asset has recently taken center stage: gold. Reaching $2,127, gold outpaced the $2,100 threshold, an event that analyst Peter Schiff considers far more significant than Bitcoin’s crossing of $40,000.

This meteoric rise of gold takes place in a favorable economic context. Financial analyst Alex Jooster points out that gold has broken its historic negative correlation with the real yield of the 10-year Treasury.

It is now negatively correlated with expectations of Fed rate hikes, suggesting that if the Fed decides to increase rates, gold could maintain its upward trajectory.

Gold Soars, Supported by a Stable Dollar and Economic Uncertainties

The price of gold is currently on a rapid rise in a bullish market. After two consecutive months of progress, it has reached a historic peak of $2,127, registering an increase of $56 over the course of the day. This exceptional record is being set against a backdrop where the US dollar remains relatively stable.

Even with a 0.2% decrease in the greenback this Friday, it remarkably resists increasing geopolitical tensions. According to analyst Peter Schiff, the dollar’s resilience in the face of uncertainty raises concerns and encourages the turn to safe-haven assets such as gold.

Moreover, the recent easing of inflation in the United States and the slowdown in the job market are strengthening expectations of a monetary easing by the Fed. A possible reduction in benchmark rates as early as 2024 lowers the opportunity cost of holding gold, thus boosting its appeal.

“If gold is this strong with the U.S. dollar flat, imagine how much more it will rise if the dollar starts to fall. The fact that the dollar is not rising with increased geopolitical tension doesn’t bode well for the dollar and is very bullish for gold.”, states Peter on X.

Bitcoin Still Needs to Rebound by 60% to Beat Its Record

Conversely, Bitcoin is still lagging far behind its previous historical peak. To surpass it, the cryptocurrency still needs to rebound by more than 60% in the coming months.

After a challenging year in 2022, marked by a loss of value reaching up to 70% between November 2021 and June 2022, Bitcoin is finishing the year 2023 remarkably. Overall for the year, BTC displays a progression of 140%. Bitcoin’s recent rise already indicates a change of trend, with the cryptocurrency gradually heading towards its peak reached in November 2021.

Although their trajectories differ, gold and Bitcoin remain two valued safe havens during times of uncertainty. Gold is likely to see its bullish momentum continue, while Bitcoin retains a strong rebound potential.