The world’s largest cryptocurrency Bitcoin (BTC) makes a strong surge as we enter into Q4 2023. Earlier today, the BTC price gained more than 4% shooting past $28,000. With this, Bitcoin has delivered a strong breakout above its 200-day moving average with the next target of $31,000 in sight.
Interestingly, the recent Bitcoin price breakout comes at a time when the gold price has touched a two-month low. The recent pressure on the Gold price comes amid the rise in the US Dollar.
Despite the prevailing risks in the global financial market, gold saw a decline rather than being the preferred “safe haven” for investors. The spot gold price dipped to a two-month low and even broke through the important support level of $1,880 per ounce, ultimately closing at $1,848 per ounce on Friday.
The relentless rise of the dollar index to a 10-month high, driven by concerns about continuously elevated interest rates in the US, added downward pressure on gold prices. Gold prices even breached the critical support level of $1,880 per ounce and continued to decline. Surprisingly, gold did not witness an influx of safe-haven demand, even amidst the current climate of risk aversion prevailing in the financial markets.
Bitcoin Unseats Gold As Safe Haven
The recent development shows that Bitcoin has once again emerged as a safe haven against Gold. Over the last decade, Bitcoin has been catching up with Gold consistently with every passing year. Also, the Bitcoin price is up by over 16x against Gold, over the last 10 years.
However, Gold’s market size is still at a staggering $13 trillion while Bitcoin’s hovers around $500 billion. So, for bitcoin to overtake Gold, one Bitcoin price has to be over $700,000.
One Bitcoin = $700,000.
That’s what it would take for Bitcoin to catch up to gold.
The total market size of physical gold is something like $13 trillion.
By comparison Bitcoin is only worth about $500 billion.
But Bitcoin is growing relatively fast while gold hasn’t really… pic.twitter.com/QTl2ewBMws
— ecoinometrics (@ecoinometrics) September 25, 2023
The bigger question here is how long will it take for the smart money to move from Gold to Bitcoin. Interestingly, 2023 has proved to be pretty good for BTC so far. Popular analyst @ecoinometrics explains:
In the context of BTC’s performance, 2023 stands out as the least bearish year in the past decade. When examining the frequency of negative returns on a day-to-day and week-to-week basis for Bitcoin, it’s evident that 2023 has experienced relatively few substantial declines, if any. This trend underscores the current year’s market stability and notable absence of significant volatility.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.