Bitcoin and Gold Simultaneously Reach Historic Highs Amid Market Turbulence
Summary:
On March 5, Bitcoin and gold simultaneously made history by achieving all-time high prices. Bitcoin surpassed the $69,200 mark, two years after it reached $69,000. Similarly, gold reached $2,130, breaking its previous high around $2,000. This surge in prices is attributed to factors like a high risk appetite, ongoing inflation, record debt levels, and geopolitical tensions. The rally in Bitcoin is further attributed to the anticipation of the upcoming quadrennial halving event and significant inflows in US spot BTC exchange-traded funds.
On March 5, Bitcoin (BTC) broke records by breaching the $69,200 threshold for the first time, setting a historical landmark for enthusiasts of the world's leading cryptocurrency. The record-breaking surge was mirrored in the mainstream financial sector, where gold also reached a never-before-seen height on the same day. TradingView's data reveals that the spot gold rate surpassed its previous best of around $2,000 from December, achieving a high of $2,130 at about 1:30 pm UTC on March 5. Bitcoin followed suit, establishing a new record high of $69,210 less than two hours later, at 3:00 pm UTC. This new high for Bitcoin arrived more than two years after it rose to $69,000 on November 9, 2021. This marked the first time that Bitcoin and gold have simultaneously realized fresh highs since Bitcoin's inception in 2009, based on price graph data. Many in the financial community interpreted these occurrences as another unfortunate day for traditional money, considering both gold and Bitcoin are often viewed as alternatives to fiat currencies and safeguards against inflation. Some market experts suggest that the unprecedented gold and Bitcoin highs are driven by predictions of future lower interest rates, which would make government debt loads manageable. This occurs in a context of relatively high interest rates across developed countries, exceeding 4.5%, according to StoneX's Matthew Weller, global head of research. Speaking to Cointelegraph, he highlighted several factors driving traders towards alternatives to fiat currencies: elevated risk appetite, stubborn inflation, unprecedented debt levels, and ongoing political instabilities in the Middle East and Eastern Europe. Bitcoin's ongoing rally is particularly stimulated by anticipation of the four-yearly halving event and significant inflows into spot BTC exchange-traded funds in the US, added Weller. Mark Cuban, a billionaire and Shark Tank personality, proclaimed his stronger belief in Bitcoin over gold in a CNBC interview on the day of the unprecedented highs. This statement was refuted by prominent gold advocate Peter Schiff who suggested Cuban was in the wrong field. As of the time of report, Bitcoin has surged 52% since the beginning of the year, according to CoinGecko, while spot gold has only increased about 2%.
Published At
3/6/2024 12:32:46 PM
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