Bitcoin and Gold Broke New Price Records
07 Mar, 2024 ● Crypto News
On March 5, Bitcoin achieved a new price milestone, surpassing $69,200 for the first time.
This significant event for the Bitcoin community happened simultaneously with notable advances in the traditional financial sector, as gold also reached a record high that day.
TradingView data indicates that spot gold exceeded its highest record ever, reaching $2,130 around 1:30 pm UTC on March 5, moving beyond its previous peak of around $2,000 in early December.
Shortly thereafter, within a span of less than two hours, Bitcoin achieved a record high, hitting $69,210 at 3:00 pm UTC.
This milestone for Bitcoin occurred over two years since its previous surge to $69,000 on November 9, 2021.
This occasion marked the inaugural time that both Bitcoin and gold achieved new record highs at the same time since Bitcoin's introduction in 2009, as shown by price data.
The community swiftly described these developments as yet another "bad day for fiat money," viewing both gold and Bitcoin as viable alternatives to fiat currencies and inflation.
Analysts suggest that the rally to new highs for both gold and Bitcoin is driven by anticipation of future lower interest rates to manage sovereign debt levels effectively.
The record-breaking highs for both assets are taking place amidst relatively high interest rates, above 4.5%, in developed countries, as mentioned by StoneX's global head of research, Matthew Weller.
He commented to Cointelegraph, saying, "From elevated risk appetite to sticky inflation to record debt levels to ongoing geopolitical tensions in the Middle East and Eastern Europe, there are plenty of reasons that traders are seeking out alternatives to traditional fiat currencies in the current environment."
The current rally for Bitcoin is attributed significantly to the excitement around its upcoming quadrennial halving event and significant inflows into spot BTC exchange-traded funds in the United States, as noted by Weller.
During this period of record highs, certain prominent Bitcoin enthusiasts have shown a stronger preference for Bitcoin over gold.
Mark Cuban, the billionaire and star of Shark Tank, expressed his preference in a CNBC interview on March 5, stating, "I’m investing in Bitcoin over gold all day, every day."
Peter Schiff, a well-known supporter of gold, countered Cuban's remarks, suggesting, "This shark is swimming in the wrong tank," in a statement on X.
As of this report, Bitcoin has seen a 52% increase since the start of the year, as per CoinGecko data. Spot gold has seen approximately a 2% rise since January's beginning.
Sources:
https://cointelegraph.com/news/bitcoin-gold-new-price-records-same-day
https://www.investing.com/currencies/xau-usd-chart
https://x.com/Schuldensuehner/status/1765101050883674276
https://www.youtube.com/watch?v=051eQLCsfEs
