While Bitcoin has been struggling to recover for months, precious metals are experiencing one of their strongest growth periods in recent years. On Wednesday, gold rose 4.4% in just 24 hours, adding roughly $1.5 trillion to its market capitalization. That’s an amount almost equal to Bitcoin’s total capitalization, which is around $1.75 trillion.<\/p>\n\n\n\n
The price of gold broke through the $5,500 per troy ounce mark and reached a new all-time high. The total value of the gold market has thus risen to approximately $34 trillion, according to data<\/a> from Infinite Market Cap.<\/p>\n\n\n\n Investors’ appetite for growth is not limited to gold. Silver is also strengthening significantly, having appreciated by 21.5% over the past week, with its market capitalization climbing to $6.6 trillion. Silver has thus further increased its lead over Nvidia, which is currently the most valuable publicly traded company in the world.<\/p>\n\n\n\n The several months of growth in precious metals is often described as a “debasement trade” \u2014 that is, investors’ response to concerns about fiscal irresponsibility and currency devaluation as a result of monetary expansion. It is precisely in such periods that assets considered to be stores of value traditionally shine.<\/p>\n\n\n\n And while gold fulfills this role, bitcoin\u2014despite often being referred to as “digital gold”\u2014has been treading water in recent months.<\/p>\n\n\n\n The price of Bitcoin<\/a> has not risen significantly since early October, when the cryptocurrency market was hit by a sharp crash. This resulted in the liquidation of positions worth over $19 billion. Just before this crash, investors were increasingly convinced that Bitcoin and gold would work together as a hedge against currency devaluation in an environment of rising debt and loose monetary policy. However, the reality of recent months shows a different dynamic for the two assets.<\/p>\n\n\n\n The difference is even more apparent when looking at a longer time horizon. Over the past five years, gold has appreciated by 185.3%, while Bitcoin has appreciated by “only” 164%. In a historical context, this is not a bad performance for a cryptocurrency\u2014but for the first time in a long time, a traditional safe-haven asset is outperforming its digital competitor.<\/p>\n\n\n\n Despite Bitcoin’s lackluster performance, some investors remain convinced that current prices do not reflect its true potential. According to a Coinbase survey published this week, 71% of the 75 institutional investors surveyed consider Bitcoin to be undervalued in the $85,000 to $95,000 range.<\/p>\n\n\n\n At the same time, roughly 80% of these investors<\/a> said that if the market fell another 10%, they would either hold or even increase their cryptocurrency positions. This suggests a long-term belief in cryptocurrencies as an asset class, despite short-term fluctuations.<\/p>\n\n\n\n The different perceptions of Bitcoin and gold are also reflected in investor sentiment indices. The Crypto Fear & Greed Index<\/a>, which measures sentiment in the cryptocurrency market, currently stands at 26 out of 100 \u2013 in the “fear” zone. In contrast, JM Bullion’s gold<\/a> index stands at 99 out of 100, which corresponds to the “extreme greed” zone.<\/p>\n\n\n\n The market is thus sending a clear signal today \u2013 while gold is the clear winner of the era of uncertainty in the eyes of investors, Bitcoin is still looking for a way to convincingly fulfill its role as a digital safe haven again.<\/p>\n\n\n\n While Bitcoin has been struggling to recover for months, precious metals are experiencing one of their strongest growth periods in recent years. On Wednesday, gold rose 4.4% in just 24 hours, adding roughly $1.5 trillion to its market capitalization. That’s an amount almost equal to Bitcoin’s total capitalization, which is around $1.75 trillion. The price […]<\/p>\n","protected":false},"author":6,"featured_media":55840,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"yasr_overall_rating":0,"yasr_post_is_review":"","yasr_auto_insert_disabled":"","yasr_review_type":"","footnotes":""},"categories":[162],"tags":[99,110],"class_list":["post-55847","post","type-post","status-publish","format-standard","has-post-thumbnail","category-crypto","tag-bitcoin-en","tag-crypto"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\tRead also:\u00a0IBIT investors are losing money<\/a><\/h3>\n\n\n\n
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