Key Takeaways:
- Gold has surged past $5,500 per ounce, adding $1.5 trillion in a single day, pushing its market value to $34 trillion, nearly matching Bitcoin. Over five years, gold rose 185%, slightly ahead of Bitcoin’s 164%.
- Technical indicators show Bitcoin is weak short term, with selling pressure and a neutral RSI. Investor sentiment favours gold, while institutional investors still see Bitcoin as undervalued and hold long-term confidence.
- The key question: stay with Bitcoin’s growth potential or shift to gold’s safe, fast-growing value?
“GOLD SHINES BRIGHT, BITCOIN’S OUT OF SIGHT.”
Bitcoin Undervalued or Falling Behind? Should Investors Move to Gold? Everyone was surprised when gold became very expensive. One ounce of gold now costs $5,500. In just one day, gold became $1.5 trillion more valuable, making all the gold in the world worth over $34 trillion.
That is nearly equal to Bitcoin’s whole market value. While major investors continue to have faith in Bitcoin, the cryptocurrency has been underperforming, hovering around $87,000.
BTC USD Chart TradingView
| Indicator | Value |
| Market Capitalization | $1.76 T USD |
| Trading Volume (24h) | $44.18 B USD |
| Relative Strength Index (14) | 41.7 |
| MACD Level (12, 26) | −770.8 |
| Exponential Moving Average (200) | 98,324.7 |
| Simple Moving Average (200) | 104,543.9 |
Technical Analysis
- Bitcoin shows short-term weakness, trading below major moving averages. RSI is neutral at 41.7, while Momentum and MACD indicate selling pressure.
- Bitcoin is below this level, which is a bearish sign. Also above the current price, confirming downward pressure.
- Overall, technical signals mostly suggest sell, though Ichimoku remains neutral, showing no extreme trend yet.
Why Investors Are Flocking to Traditional Safe Havens?
Gold has increased by 185% over the past five years, somewhat outpacing Bitcoin’s 164% increase. This demonstrates how investors’ perceptions of digital currency like Bitcoin differ from those of conventional safe investments like gold.
Although its prices haven’t increased significantly recently, many frequently believed that Bitcoin would be a fantastic inflation hedge.
The “debasement trade,” which occurs when money loses value and investors seek out safer assets, is what experts refer to as the surge in gold and silver.
Silver’s market value has increased significantly as well, rising 21.5% in just one week to $6.6 trillion. In terms of market value growth, this even outperforms some of the largest IT firms.
Market Predicts
Investor sentiment makes this distinction quite evident. With a score of 26 out of 100, the Crypto Fear & Greed Index for Bitcoin indicates market fear. However, the Fear & Greed Index for gold is 99 out of 100, indicating a very high level of confidence.
Conclusion
Large investors continue to have faith in Bitcoin despite its slowdown. Most people believe Bitcoin is undervalued between $85,000 $95,000, according to a recent survey. Many expressed a long-term belief in Bitcoin by stating that they would either buy more or hold onto their current holdings even if prices declined.
The Main question now is whether investors should stick with Bitcoin, which has the potential to grow much more in the future, or switch to gold, which is secure and expanding quickly. In the short term, gold is robust, but Bitcoin appeals to risk-takers due to its small supply and the backing of large investors.
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