Bitcoin seems to have woken up from its long slumber, recently surpassing the $65,000 mark. Despite this achievement, it has struggled to reach its previous high. Meanwhile, gold, true to its reputation, has been hitting record highs. Between the safe haven status of one side and the surge of investment funds of the other, the competition is getting fierce. Let’s take a closer look at the numbers and trends of this economic battle.
Bitcoin vs. Gold: Two Worlds, Two Dynamics
On the record-breaking stage, gold leads the charge, hitting 30 record highs this year – including one in August after it breached $2,500, compared to just five for Bitcoin. But the issue isn’t popularity, it’s inflows. Bitcoin-linked ETFs have raised $19 billion since their launch, while gold-backed funds have attracted just $1.4 billion, a striking contrast.
In terms of dynamism, Bitcoin attracts with its rapid and sharp price fluctuations, while gold remains in a more predictable pattern.
30 gold records achieved in 2023;
5 records for Bitcoin ( BTC );
$19 billion invested in Bitcoin ETFs, compared to $1.4 billion invested in gold.
Times of economic uncertainty and inflation have always favored gold, the old safe haven. But the large inflows into Bitcoin ETFs represent a shift in mindset among investors, who increasingly favor volatility and the potential for quick gains.
BTC ETF: Growing Appeal
Recent ETF figures show record enthusiasm: more than $555 million flowed into US-based Bitcoin investment funds in a single day, the first time since June.
Big players aren’t left out either, with funds like the Fidelity Wise Bitcoin Origin Fund, which raised $239.3 million, and the Bitwise Bitcoin ETF with a little over $100 million.
Your First Cryptocurrency with Coinbase This link uses an affiliate program.
“It’s ridiculous, it’s exceeded all expectations,” analyst Nate Geraci summarized, noting the growing adoption among financial advisors and institutional investors.
Despite this enthusiasm, Ethereum-related products have not followed the same path, to BlackRock's disappointment: very few entries, or even net outflows for some products, suggest a focus on Bitcoin.
Some analysts wonder: with rising tensions in the Middle East and geopolitical instability, can Bitcoin survive against gold?