Bitcoin, Gold Both Hitting ATH Are A Jarring Contrast For Markets
Bitcoin and gold have reached record highs, marking the first simultaneous records for the two assets since Bitcoin emerged over a decade ago. However, the drivers of each asset are different, with gold acting as a haven store of value for millennia and Bitcoin playing a role beyond pure speculation.
Bitcoin has jumped almost 50% this year, thanks to inflows into US exchange-traded funds holding the digital currency. Gold’s rise could be seen as defensive positioning due to geopolitical tension or a possible pullback in global stocks.
Chris Weston, head of research for Pepperstone Group Ltd, suggests that traders chase short-term momentum across asset classes. Both Bitcoin and gold are viewed as beneficiaries of expectations of looser monetary policy, with swaps markets showing a 62% chance of a Federal Reserve interest-rate cut in June, compared to 58% at the end of February.
(With inputs from Shikha Singh)
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