According to several experts, one of the possible reasons for the recent rise in bitcoin prices was the massive flow of investors from another hedge against inflation: gold.
Spot gold prices last week fell 4.62% to $ 1,857. The asset has previously increased in partnership with Bitcoin, which is more than 40% higher than last week’s low of $ 28,000.
In a tweet on Friday, Charlie Morris, founder and head of information at ByteTree Asset Management, said that the golden downturn can be attributed to investors’ switch to bitcoin:
Likewise, earlier this week, CNBC host Jim Kramer said the outflow of gold ETFs would “go to cryptocurrencies.” Tracking inflows and outflows from the Grayscales Bitcoin ETF and Gold ETF supports this claim, as shades of gray are better than gold:
These moves could be a sign of Bitcoin’s growing status as a legitimate asset class. Gold and Bitcoin have long been linked as both are seen as a way to protect wealth from inflation and macroeconomic uncertainty, but if price movements over the past week are any indication, Bitcoin may have won the storytelling race.
In an interview with Bloomberg, Coinshares sales revenue manager Frank Spitieri said that Bitcoin’s history as a hedge against inflation is gaining traction “in the face of a very unconventional monetary policy environment.”
“It appears that we are in the process of simultaneously awakening among organizations against Bitcoin as a non-securities store,” he said.
The expert notes came after a unique flop earlier this week: as of Friday, Bitcoin is worth more than a 20-ounce gold bar.
However, despite the decline in prices and the rise in bitcoin, some well-known golden mistakes refuse to leave their positions.