- The world’s largest cryptocurrency, Bitcoin (BTC), is showing strong upward momentum as we enter the fourth quarter of 2023. Today, the BTC price has risen by more than 4%, surpassing $28,000.
- The price surge in Bitcoin comes at a time when the price of gold has touched a two-month low. This pressure on the price of gold is accompanied by the strengthening of the US Dollar.
- This recent development once again demonstrates Bitcoin’s position as a safe haven compared to Gold. Over the past decade, Bitcoin has consistently approached Gold in value.
Bitcoin’s price has risen by more than 4% in the last 24 hours, breaking the critical resistance level of $28,000. What’s next for BTC? Demand for a safe haven is on the rise!
Bitcoin Price Shows Significant Increase in the Last 24 Hours
The world’s largest cryptocurrency, Bitcoin (BTC), is showing strong upward momentum as we enter the fourth quarter of 2023. Today, the BTC price has risen by more than 4%, surpassing $28,000. In doing so, Bitcoin has made a strong breakout above its 200-day moving average and is progressing towards its next target of $31,000.
Interestingly, the recent Bitcoin price surge comes at a time when the price of gold has touched a two-month low. This pressure on the price of gold is accompanied by the strengthening of the US Dollar.
Despite the current risks in global financial markets, gold has retreated rather than being the preferred “safe haven” for investors. The spot gold price reached a two-month low and even broke the crucial support level of $1,880 per ounce, ultimately closing at $1,848 per ounce on Friday.
The continuous rise in the US Dollar, driven by concerns about persistently high interest rates in the United States, has pushed the dollar index to a 10-month high, increasing pressure on gold prices.
Gold prices have even surpassed the critical support level of $1,880 per ounce and continue to decline. Surprisingly, gold has not seen an increase in safe-haven demand despite the risk-averse climate dominating financial markets.
Bitcoin Surpasses Gold as a Safe Haven
This recent development once again demonstrates Bitcoin’s position as a safe haven compared to Gold. Over the past decade, Bitcoin has consistently approached Gold in value. Additionally, in the last 10 years, Bitcoin’s price has increased 16-fold compared to Gold.
However, while the market capitalization of Gold is still surprisingly at the $13 trillion level, the market capitalization of Bitcoin hovers around approximately $500 billion. Therefore, for Bitcoin to surpass Gold, the price of one Bitcoin would need to be over $700,000.
Here’s a bigger question: How long will the transition from Gold to Bitcoin as smart money take? Interestingly, 2023 has proven to be a rather positive year for BTC. Popular analyst Ecoinometrics explains:
“In terms of BTC performance, 2023 stands out as one of the least bearish markets in the last decade. When we look at the frequency of negative returns on a daily and weekly basis for Bitcoin, it’s clear that 2023 has relatively few significant downturns, if any. This trend highlights the market stability and the lack of significant volatility in this year.”
