Jerome Powell

Bitcoin

Gold

<p>In a context where Bitcoin has surpassed its previous 2021 record, the price of gold has also reached an unprecedented level on March 5, hitting $2,140 an ounce. This rise of 4.97% in a week for the global safe haven rings the alarm about a possible excessively loose monetary policy.</p>
<h2 id="h-after-bitcoin-gold-reaches-historical-peaks">After Bitcoin, gold reaches historical peaks</h2>
<p>On Tuesday, March 5, an ounce of fine gold reached $2,140, setting a new historical record, thus marking a significant increase of nearly 5% from the previous week. Over the last six months, gold’s progress has risen by more than 11% against the US dollar.</p>
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<p>Despite this new peak, the fluctuations of gold remain modest compared to the <a href="https://www.cointribune.com/en/bitcoin-surpasses-69000-its-all-time-high-since-2021/" target="_blank" rel="noopener noreferrer nofollow">spectacular surge of Bitcoin</a> in 2024. Since January, BTC has climbed by 48% while gold has only increased by 3.2%.</p>
<p>For Peter Schiff, a pro-gold investment stalwart, this spike sends a warning signal to central banks. “<em>When gold hits a record level, it means that monetary policy is too loose</em>,” he has reiterated.</p>
<p>Schiff predicts that far from tightening rates, Jerome Powell could even discuss new reductions before Congress. A prospect which, according to him, will only fuel the rise of gold prices and inflation.</p>
<h2 id="h-supremacy-of-gold-over-btc-for-how-long">Supremacy of Gold over BTC… For how long?</h2>
<p>In a detailed <a href="https://news.bitcoin.com/precious-metal-peaks-gold-surpasses-2140-marking-historic-price-high/" target="_blank" rel="noopener noreferrer nofollow">analysis</a>, Jim Bianco highlighted a record divergence between the price of physical gold and the flows of major dedicated ETFs such as SPDR Gold Shares (GLD) or the Ishares Gold Trust (IAU).</p>
<p>“<em>The demand from non-ETF investors is stronger than the sales of these index funds</em>,” points out the macroeconomics specialist. A rare dynamic that had not been seen for 20 years according to Bianco.</p>
<p>Indeed, gold remains entrenched in its centuries-old status as the ultimate safe haven. But the precious metal can also boast an XXL market capitalization of more than $14 trillion. A level much higher than that of Bitcoin, valued at $1.23 trillion.</p>
<p>On the long term, however, the balance of power could well be reversed. While an ounce of gold has “only” increased by 65% in 5 years against the US dollar, Bitcoin soared by 1,496% over the same period! Enough to fuel the heated debate between advocates of “new” and “old” safe haven assets.</p>

Bitcoin and Gold, Same Battle: The Wild Race Towards Historical Highs

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Cointribune EN

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