- With the increasing influx of Bitcoin ETFs, renowned financial figures and market analysts like Robert Kiyosaki foresee an impending battle between Bitcoin and Gold.
- Robert Kiyosaki reiterated his concerns about the sustainability of U.S. Treasuries and banks beginning to prefer gold over U.S. debts in a recent post.
- Since the launch of the U.S. Bitcoin ETF on January 11th, the total net Bitcoin ETF inflows have reached $4.11 billion, indicating the growing interest of ETF issuers in cryptocurrencies.
As the interest in spot Bitcoin ETFs intensifies, debates comparing Gold and Bitcoin have reignited: Gold prices may experience a shake-up!
Kiyosaki Expects a Decline in Gold Prices
With the increasing Bitcoin ETF inflows, notable financial figures and market analysts such as Robert Kiyosaki foresee an upcoming competition between Bitcoin and Gold. Meanwhile, recent data indicates a significant shift in investor sentiment towards Bitcoin, with substantial inflows into Bitcoin ETFs and corresponding outflows from Gold ETFs.
This trend raises questions about the future trajectory of both assets and their roles in the evolving investment landscape. Robert Kiyosaki expressed concerns in a post, echoing Andy Schectman’s worries about the sustainability of U.S. Treasuries and banks turning to gold instead of U.S. debts. Kiyosaki anticipates a potential decline in gold prices, possibly below $1200, and an increase in silver and Bitcoin. This sentiment aligns with the trend of significant inflows into Bitcoin ETFs coinciding with outflows from Gold ETFs.
For instance, on February 14th, the U.S. Spot Bitcoin ETF recorded a net inflow of $340 million, reaching its all-time high with a staggering $631 million in a single-day entry on February 13th. Since the launch of the U.S. Bitcoin ETF on January 11th, total net Bitcoin ETF inflows have reached $4.11 billion, indicating the growing interest of ETF issuers in cryptocurrencies.
However, Bloomberg’s Senior ETF Analyst, Eric Balchunas, emphasized an estimated $2.39 billion outflow from Gold ETFs by 2024. Market experts speculate that the growing interest in Bitcoin ETFs is leading to the outflow from Gold ETFs. Analysts expect Bitcoin to intervene in Gold’s market share sooner than anticipated, filling the gap in the safe-haven asset space against Gold.
Nevertheless, according to Eric Balchunas, the influx into Bitcoin ETFs reflects a trend toward equities rather than a mass migration from Gold to Bitcoin.
Rise of Bitcoin Threatens Gold’s Dominance
According to on-chain analytics provider Checkmate, Bitcoin is gradually entering the domain of Gold, considered the premier safe-haven asset. Bitcoin’s current representation of 15% of the total investment-grade market value indicates a promising future in the safe-haven asset space.
Analysts like Bitcoin Munger suggest that the significant entries into Bitcoin ETFs and the lack of a significant presence in Gold ETFs indicate changing dynamics in traditional safe-haven investments. Bitcoin Munger anticipates Bitcoin’s dominance over Gold in a period where significant entries into Bitcoin ETFs coincide with notable exits from Gold ETFs.
Additionally, Adam Back, Co-founder and CEO of Blockstream, echoes these sentiments, expecting Bitcoin to outpace Gold more rapidly than previous projections. With Bitcoin returning to a $1 trillion market value, analysts anticipate increased competition between Bitcoin and Gold in the coming period.
This data-driven narrative highlights the evolving dynamics of traditional safe-haven assets and the potential of Bitcoin to shape the global financial landscape. In an environment where investors evaluate their options during uncertain times, the competition between Bitcoin and Gold intensifies, leading to a robust race in the realm of solid monetary assets.
