The tide is turning for Bitcoin. With the election of Donald Trump, the flagship cryptocurrency could well eclipse gold, according to a key metric that indicates massive investor turnover. Find out why analysts see BTC rising to $80,000…
The tide seems to be turning in favor of Bitcoin. While gold, a traditional safe haven, has dominated for several months, a key metric suggests a radical change of direction for investors. Indeed, according to analysts, the election of Donald Trump as president of the United States could well propel the number one cryptocurrency beyond the yellow metal.
The Bitcoin/Gold ratio explodes following Trump's victory
Last Wednesday, as the election results came in, the ratio between the price of Bitcoin and that of gold jumped by 12%. A record since February 2022, highlighting the renewed enthusiasm for cryptocurrency. This surge confirms the break of an 8-month downward trend, suggesting a sustainable higher return for BTC compared to gold.
Towards $80,000 for Bitcoin?
Building on this dynamic, experts foresee a continued rise in Bitcoinwith a goal of $80,000 or more by the end of the year. According to Noelle Acheson, author of the newsletter Crypto Is Macro Nowinvestors will increasingly turn to BTC as a hedge against currency devaluation and to take advantage of the favorable policies of the new administration.
Trump, a strong ally for cryptos
The coming to power of Donald Trump, a fervent defender of digital currencies, should indeed give a boost to theinstitutional adoption of Bitcoin. There regulatory clarity long awaited by the digital assets industry could finally see the light of day. Rumors even speak of the creation of a strategic reserve of Bitcoins by the American government.
Analyzing the relationship between BTC and gold, we can see that the downward trend [indicativa del rendimiento superior del oro desde marzo] is beginning to reverse.Noelle Acheson, author of Crypto Is Macro Now
Will gold suffer from rising rates?
Conversely, the fate of gold appears more uncertain. Expectations of high interest rates under the Trump presidency could tarnish its appeal as a safe haven. If this trend continues, more and more investors could abandon the precious metal in favor of Bitcoin.
On the way to a new paradigm?
This rotation from gold to Bitcoin, if confirmed, would mark a major turning point for the cryptocurrency industry. Long considered a speculative and volatile asset, BTC could finally earn its stripes digital safe havenattracting a growing share of institutional and individual portfolios.
Of course, this development will not be smooth and the road to $80,000 will probably be paved with ups and downs. Nevertheless, Trump's victory and the metamorphosis of the Bitcoin/gold ratio give a serious indication of the change in investor perception. The king of cryptos seems more than ever on the verge of dethroning gold, its historic rival.
Conversely, the fate of gold appears more uncertain. Expectations of high interest rates under the Trump presidency could tarnish its appeal as a safe haven. If this trend continues, more and more investors could abandon the precious metal in favor of Bitcoin.
On the road to a new paradigm?
This rotation from gold to Bitcoin, if confirmed, would mark a major turning point for the cryptocurrency industry. Long considered a speculative and volatile asset, BTC could finally earn its stripes digital safe havenattracting a growing share of institutional and individual portfolios.
Of course, this development will not be smooth and the road to $80,000 will probably be paved with ups and downs. Nevertheless, Trump's victory and the metamorphosis of the Bitcoin/gold ratio give a serious indication of the change in investor perception. The king of cryptos seems more than ever on the verge of dethroning gold, its historic rival.
