Don’t think that gold and Bitcoin are rising and falling together now, but it may not last too long.
Gold started to rise in August 2022, and it has risen by about 50% so far.
Bitcoin started to rise at the end of 2022, and it has doubled so far.
Why are the trends of these two assets so similar?
Is it because Bitcoin is digital gold?
I personally think that the logic of the rise of Bitcoin and gold is the same at this stage, but they may go their separate ways after the Fed cuts interest rates.
Let’s talk about gold first. What is the reason for its rise from the end of 2022 to now?
Is it because the Fed wants to cut interest rates?
Definitely not!
The Americans are now very calm. What inflation is strong, the employment data is strong, and he said that he would not cut interest rates. Gold has risen for a year and a half. You say it is because of the interest rate cut. How is it possible? The rise began because of the insecurity of central banks in various countries. Everyone is stockpiling strategic materials. At this time, BTC also rose.
What is BTC?
It is a strategic material that does not require a lot of transportation and storage costs. The total amount is controllable and the consensus is stable. Especially after the United States issued the Bitcoin ETF, it directly entered the mainstream. In everyone's mind, it is basically the same as gold. So the question is, if gold rises, can BTC not rise with it?
Why do you say that the two may go their separate ways after the Fed cuts interest rates?
After the Fed cuts interest rates, it means that money has come out and liquidity has been released. Like many aggressive assets, such as equity and derivatives, it may be eager to try. Then the funds will inevitably come out of gold, but do you think the funds may come out of BTC?
Not necessarily, because BTC is digital gold, it is more like a high-risk derivative. At this time, the funds may accelerate the inflow, and gold may stall, but BTC may not necessarily stall! Instead, it will continue to rise and continue to break new highs!
Finally, if you are a complete beginner and you are excited to enter the cryptocurrency world after seeing BTC hit a record high, then I suggest you follow me first, learn the knowledge of the cryptocurrency world with me, and improve your basic skills. Only by laying a solid foundation can you go further.
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