#BTC #GOLD 5 Reason Why Is Following Gold In Price

While BTC out performed the crypto market in the following Russia-Ukraine conflict. it has outperformed since the commencement of the middle East conflict. But things are changing!

An interesting observation emerges regarding the performance of bitcoin relative to gold. The BTC to gold ratio, a gauge of their relative performance has dropped from 15 to 14, marking its lowest since august.

5 Reasons

1 SAFE HAVEN STATUS OF GOLD

Traditionally, gold has been considered as safe haven aaset. In time of economic uncertainty such as war, investors tend to flock to gold. this drives gold prices higher. Since Bitcoin is the digital gold, it is a modern safe haven asset.

2 INFLATION HEDGE STATUS

Both bitcoin and gold are seen as stores of value and hedges against inflation.

3 MARKET SENTIMENT

The Israel-Hamas war has contributed to fear in the market

4 LIQUIDITY

For many investors in the war affected regions and the Asia-pacific, liquidity is a priority.

even though gold has universal liquidity, it doesn't offer instant liquidity because is a physical asset.

5 DEMOGRAPHICS

Younger investors might be more inclined toward Bitcoin, while traditional investors might favor gold. the risk taking attitude of younger investors will be key in adding more buy pressure to bitcoin.