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The conflict in the Middle East between Israel and Iran prompted a sharp drop in the Bitcoin price on April 14th, causing BTC to plummet from $67,900 to $60,050. In the meantime, the price of Gold immediately shot-up to an all-time-high of $2,430 per Troy oz!
This was a critical test for both Bitcoin and Gold. At this moment, it appears as if Gold won the contest. In fact there are reports that major central banks around the world have been loading up on gold reserves as they move away from the United States dollar.
Gold has been rising in prices since its last dip on Feb. 14, 2024 when it was priced around $1,990. Like Bitcoin, Gold has been on a steady climb, posting a whopping 21% rise during the past 60 days. In the meaning Bitcoin has gone from $51,350 to $73,700 or 43% rise, before dipping this past weekend to its current price range of $63,400 or an adjusted 23% rise.
Gold vs Bitcoin
Although it does appear that global investors prefer Gold over Bitcoin when it comes to an inflation hedge, Bitcoin has completely outperformed gold. Bitcoin has gone from pennies to $73,800 a coin in merely 15 years, a rise of over 105K%, while Gold went from a price of $854 on January 9th, 2009, on the day of Bitcoin’s official launch, to its current price of $2,400 today; a rise of only 281%.
Absent from the above comparison is the fact that Gold has had over 2,000 years to build its reputation and monetary status. Bitcoin has done it in just 15 years. Additionally, the introduction of BitcoinETFs in the United States, Europe, Australia, and now Hong Kong, clearly demonstrates that Bitcoin is expanding its market share while Gold retains its reserve status amongst the more traditional investor groups. In fact, since the introduction of BitcoinETFs, the leading GoldETFs have lost over $2.4 Billion in inflows as investors transfer their position to Bitcoin!
This is confirmed in an article on Cointelegraph:
“Gold-tracking exchange-traded funds (ETFs) have lost billions in outflows in 2024, in contrast to ETFs tracking the spot price of Bitcoin.
The 14 leading gold ETFs have seen outflows of $2.4 billion so far in 2024, according to an X post from Bloomberg intelligence analyst Eric…
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