Analysis of the reasons why Bitcoin soared and gold plummeted under the "Trump deal"
The "Trump deal" continues to explode, and Bitcoin has become the big winner. On Monday, the price of Bitcoin broke through $88,000, with an intraday increase of more than 11%, and the trading volume of Bitcoin ETFs soared. The confidence in the currency circle has increased greatly, and the market is betting that this round of rise has just begun, or it may continue until Trump's inauguration.
Since Trump showed signs of winning the election, the price of Bitcoin has risen by more than 25%, and its ETF trading volume increased sharply on Monday.
However, the previously well-regarded gold performed poorly. After the US election, the price of gold fell sharply, breaking the 50-day moving average and approaching the key mark of $2,600, diluting the joy brought by the record high price of gold. At present, the ratio of Bitcoin to gold is close to the recent high.
Why did Bitcoin soar and gold plummet? Analysts believe that "Trump 2.0" may be more inclined to the idea of "small government", which is good for Bitcoin as a "decentralized" asset and weakens the safe-haven appeal of gold.
Bloomberg analyst John Stepek said that many people believe that Trump's governing style may be biased towards the "small government" idea, that is, reducing government intervention and spending, rather than the "big government" model advocated by modern monetary theory. In this case, Bitcoin, as a "decentralized" asset, is expected to benefit.
The same is true for the sharp drop in gold. Previously, the market believed that Trump's coming to power would lead to higher fiscal spending and deficits, supporting gold prices. Now market expectations have changed, and Trump may not aggressively expand spending, or even be more cautious, which will suppress the safe-haven properties of gold and reduce its hedging appeal.
In addition, Spectra Markets analyst Brent Donnelly said that this round of US elections has made politicians pay attention to people's dissatisfaction with inflation, and "Trump 2.0" may pay more attention to inflation management, further weakening gold demand and enhancing the attractiveness of Bitcoin as an emerging asset. #BTC00929 #黄金下跌
