Crypto & Web3.0
Bitcoin vs Gold – Which Is Winning?
The idea that bitcoin will become the new “digital gold” is losing its relevance.
The collapse of FTX and the bearish trend of 2022 in the cryptocurrency market are returning investor interest in the traditional instrument, gold. The idea that bitcoin will become the new “digital gold” and the salvation from high inflation is losing its relevance.
Francisco Blanch, head of research at Bank of America, said that the fall of the cryptocurrency is one of the reasons he is bullish on gold. The bank predicts prices to rise to $2,000 per ounce in 2023.
JP Morgan has a similar opinion: “With the Fed on pause, the decline in real yields in the US determines our bullish base price forecast for gold and silver. We forecast gold prices to rise to an average of $1,860 per ounce in the fourth quarter of 2023.”
Meanwhile, according to Bloomberg, miners are having trouble paying off $4 billion in loans and are giving away hundreds of thousands of cryptocurrency mining devices to lenders instead of making payments.
The BTCUSD/GLD (gold price versus bitcoin) chart shows that bitcoin is taking a beating in 2022. If the trend continues, we may see a touch of the lower line (1), which would mean only 7-8 ounces per coin (it was almost 30 a year ago).