- Amid economic uncertainty, gold has risen significantly this year.
- Despite the recent price action, Bitcoin is still outperforming gold year-to-date (YTD).
Gold, the popular precious metal, has witnessed an exponential rise amid the economic certainty due to the pandemic. After opening the year at a price of approximately $1,520 per ounce, the precious metal has risen over $250 and is nearing $1,800 an ounce.
The economic uncertainty amid the pandemic combined with gold’s popular narrative as a safe-haven asset may be acting as a catalyst for the recent gold euphoria, pushing up gold prices to near-record levels.
Central banks are also taking drastic measures amid the pandemic, including slashing interest rates and handing out trillions in stimulus. Furthermore, the U.S. money supply has been soaring as the U.S. national debt crosses $26 trillion for the first time. The rising national debt may raise concerns about the country’s ability to sustain the ever-rising debt.
Bitcoin Outperforms Gold
Bitcoin is often dubbed as the “digital gold” as it shares a few similarities with the precious metal, including a limited supply and scarcity. Similar to physical gold, Bitcoin is having a noteworthy year posting incredible gains.
The popular digital asset opened the year at $7,200 crossing $10,000 shortly after. After falling below $5,000 on March 12 in an event later coined as “Black Thursday”, the cryptocurrency quickly recovered, nearly reaching $10,000 just prior to the anticipated halving event. The cryptocurrency is now trading at the $9,100 level after falling the past week. Despite this, Bitcoin is still outperforming gold year-to-date (YTD), according to Skew, a cryptocurrency data analytics platform.
Furthermore, The Crypto Associate previously reported on Bitcoin’s strong Q2 close despite the recent price decline. While Bitcoin is currently outperforming gold year-to-date, both assets are up substantially this year.
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