According to Odaily, the correlation between Bitcoin and gold has reached its lowest point in 11 months, attributed to a shift in capital allocation. Since the U.S. presidential election, gold prices have fallen by over 5%, while Bitcoin has surged more than 20% within a week. This trend indicates a strategic adjustment by investors regarding safe-haven assets. Analysts from QCP Capital suggest that Bitcoin is increasingly being perceived as 'digital gold,' with funds moving away from traditional safe-haven assets like gold towards cryptocurrencies.
Following the election victory of Donald Trump, the U.S. dollar strengthened, and U.S. Treasury yields rose, diminishing gold's appeal. The market anticipates that the new administration's policies could lead to increased inflation, potentially affecting the Federal Reserve's pace of interest rate cuts. Additionally, QCP Capital's analysis highlights that if just 1% of the funds from the gold market were to flow into Bitcoin, it could potentially drive its price up to approximately $97,000. This shift underscores the evolving landscape of investment strategies as digital currencies gain traction as viable alternatives to traditional assets.
