Will crypto markets outperform the traditional Gold market?

Source Fxstreet
  • According to Northstar analysis, crypto markets could rally following a breakout.
  • Presidential candidates Donald Trump and Robert Kennedy Jr. voiced their support for Bitcoin at the Bitcoin conference in Nashville.
  • After Bitcoin's fourth having, the title of the scarcest asset has shifted from Gold to Bitcoin.

In yet another sign that crypto is upending the normal equilibrium of capital markets, Gold’s recent bull market is looking to give way to a coming bull market in Bitcoin, according to investment research firm Northstar.

Northstar analysis compares crypto's total market cap to Gold prices. An upward trend on the chart signifies a bullish sentiment in crypto, with investors favoring digital assets, while a downward trend indicates Gold's strength and investor preference for precious metals. Historical data shows that when the price dips below the 12-month Simple Moving Average (SMA), as seen in mid-2018, Gold has outperformed crypto. 

Currently, the formation of a rising wedge pattern, marked by multiple swing highs and lows since early 2023, suggests that if prices close above the upper trendline, Ichimoku Cloud, and the 12-month SMA, this signals a bullish phase for crypto. 

Conversely, a close below the lower trendline could lead to a crash in crypto prices while boosting Gold's performance.

Data from CryptoRank.io highlights that Bitcoin's total market capitalization stands at $1.35 trillion, compared to the $543 billion in Gold reserves held by the US. This disparity suggests significant growth potential for the crypto market compared to traditional Gold markets. 

Additionally, at a cryptocurrency conference in Nashville, presidential candidates Donald Trump and Robert Kennedy Jr. voiced their support for Bitcoin, with Trump proposing the establishment of a Bitcoin reserve and Kennedy advocating for the federal government to acquire Bitcoin equivalent to the value of the nation's gold reserves.

According to GlassNode data, following Bitcoin's fourth halving, Bitcoin's steady-state issuance rate of 0.83% is now lower than Gold's, approximately 2.3%, thereby transferring the title of the scarcest asset from Gold to Bitcoin.

Scarcity often drives demand. As Bitcoin is perceived as more scarce than Gold, it could lead to higher demand and potentially drive up Bitcoin's price over time.

Bitcoin vs Gold Inflation Rate Chart

Bitcoin vs Gold Inflation Rate Chart

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold ends three-week slide at the $4,400 line — eight straight days of ETF inflows vs a 5% 10-year and a 100 dollarSpot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.
Author  Suzie
Sep 20, Sun
Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
Gold holds steady below $4,150 amid elevated US yields Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
Author  FXStreet
Oct 06, Tue
Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
placeholder
WTI rises to near $89.50 as Middle East supply threats offset Persian Gulf recoveryWest Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
Author  FXStreet
23 hours ago
West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
placeholder
Gold Price Forecast: XAU/USD retraces gains and nears two-month lows at $4,104Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and resumes its broader bearish trend, with the US Dollar (USD) appreciating across the board, as investors brace for the release of the minutes of the latest Federal Reserve (Fed) meeting.
Author  FXStreet
14 hours ago
Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and resumes its broader bearish trend, with the US Dollar (USD) appreciating across the board, as investors brace for the release of the minutes of the latest Federal Reserve (Fed) meeting.
goTop
quote