As a seasoned researcher who has witnessed the ebb and flow of financial markets over the past decade, I find myself intrigued by the current trend of gold and Bitcoin reaching new heights. The similarity between their upward trajectories is not lost on me, especially given my personal experience navigating through market cycles.
As a researcher, I’ve observed an impressive surge of over 2% in the price of gold within the past week, hitting a record high. This growth is primarily driven by heightened global demand for safe-haven assets and speculations about potential interest rate reductions from prominent central banks. Meanwhile, Bitcoin has shown steady progression, breaking the $67,000 mark.
Based on data from Trading Economics, the price of gold climbed to an all-time high of $2,700 per ounce on October 18th. Over the last week, it has increased by approximately 2.08%, while over the past month, its growth has been roughly 5%.
As a crypto investor, I’ve noticed an upward trend in gold prices, fueled by increased demand for secure investments and anticipation of interest rate decreases by prominent central banks. Recently, the European Central Bank has reduced rates for the third time this year, dropping the deposit rate to 3.25%. This move is likely a response to economic uncertainties and an attempt to stimulate growth within the region.
The conflict in the Middle East, particularly the recent Israeli military action resulting in the death of Hamas leader Yahya Sinwar on October 17, is also impacting gold prices due to concerns about potential escalation in the region.
Currently, Bitcoin (BTC) has been climbing steadily, with its price trending upward since October 10. As per crypto.news data, Bitcoin saw an increase of about 11% over the last week and reached a two-month peak of $68,375 on October 16.
Charles Edwards, a co-founder at Capriole Investments, which specializes in managing cryptocurrencies, noted the striking parallel he sees between Bitcoin’s price surge and that of gold.
According to Edwards’ post, it’s common for the larger trends in Bitcoin to follow those of gold with a delay of several months. This suggests a positive outlook.
Generally speaking, it’s common for the overall direction of Bitcoin’s movement to follow that of gold, but with a delay of several months. This looks quite promising.
— Charles Edwards (@caprioleio) August 12, 2024
Over the past few years, some investors have noticed striking similarities between the price fluctuations of Gold and Bitcoin in financial markets. This comparison is largely based on the fact that both Gold and Bitcoin are scarce resources, not tied to any specific national currency. Consequently, they serve as a “safe refuge” for investors, shielding them from the unpredictable swings of national currencies.
In essence, Bitcoin, often referred to as “digital gold”, now allows for the creation and trading of actual gold in a tangible form through Swarm Market’s platform. This is achieved by utilizing the Ordinals protocol on the Bitcoin blockchain.
On October 17th, Swarm Market unveiled a collaboration with OrdinalsBot. This allows for the labeling of individual Satoshis with distinct gold kilobar serial numbers. As a result, it’s now possible to trade actual gold bars through Bitcoin’s Ordinals protocol.
Via this collaboration, Gold will become the initial Rights-as-a-Service (RWA) offered on Trio, a forthcoming marketplace created by OrdinalsBot.
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2024-10-18 15:16