During times of economic distress, the shiny chemical element, commodity, and precious metal known as gold, is often looked to by investors seeking to place capital in a safe haven “hedge” against falling fiat values, and in the face of uncertainty surrounding traditional markets such as real estate or the stock market. Bitcoin shares many similarities between it and gold, earning it the title of being its digital counterpart.
In recent days and as global economy fears grow, both the precious metal and Bitcoin are beginning to show their values as a hedge in the face of a potential downturn. The two assets are each about to embark on their next bull runs. However, according to one financial analyst, gold’s bull run will leave Bitcoin in its dust, and crypto investors may increasingly be reinvesting their crypto returns into gold.
Analyst: Entire BTC Market Cap Needed to Move Gold Just 3%
Due to the economic “uncertainty,” gold for the first time in a long time, has shown some bullish sentiment and price movement as more investors to seek a hedge for their capital in the face of a global financial meltdown. It recently began its next bull market, which has caused many comparisons to its digital counterpart – Bitcoin – which has also recently started on another bull run.