Markets, Bitcoin, Gold, Market Wrap, News The two property have had inverse-correlated ETF flows on 4 totally different days within the final week.
What might or might not have been a blow-off prime final week within the worth of gold seems to have benefitted bitcoin (BTC) and that development may very well be set to proceed.
Already among the many best-performing world property in latest months, gold’s rally powered to new heights within the weeks following President Trump’s Liberation Day tariffs in early April.
The worth finally peaked above $3,500 per ounce on April 21, with bitcoin on the time altering fingers at $87,000 — roughly flat from Liberation Day, however decrease by about 20% from its file excessive hit in January.
Since, although, gold has tumbled almost 10% to its present worth simply above $3,200 per ounce. At the identical time, bitcoin has rallied about 10% to a two month excessive of $97,000.
“I think bitcoin is a better hedge than gold against strategic asset reallocation out of the U.S.,” mentioned Standard Chartered’s Geoff Kendrick.
Kendrick took notice that the ETF influx scenario has flipped together with the worth, with cash headed into bitcoin funds surging previous that headed into gold funds.
Further, mentioned Kendrick, the final time bitcoin ETF inflows had such a large margin over gold was the week of the U.S. presidential election. Two months later, the worth of bitcoin had risen greater than 40% to above $100,000.
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