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Amid growing speculation on Bitcoin ETF inflows, renowned financial figures like Robert Kiyosaki and market analysts suggest a looming battle between Bitcoin and Gold. Meanwhile, recent data indicates a notable shift in investor sentiment towards Bitcoin, fueled by significant inflows into Bitcoin ETFs and a corresponding outflow from Gold ETFs.

Notably, this trend prompts questions about the future trajectory of both assets and their place in the evolving investment landscape.

Bitcoin ETF Inflow Surges Amid Gold ETF Woes

In a recent post, Robert Kiyosaki echoed concerns raised by Andy Schectman regarding the sustainability of US Bonds and the growing preference for gold over US debt by banks. Kiyosaki predicts a potential crash in gold prices, possibly below $1200, alongside a surge in silver and Bitcoin. This sentiment resonates with market movements as Bitcoin ETFs witness substantial inflows while Gold ETFs experience outflows.

For context, on February 14th, the U.S. Spot Bitcoin ETF recorded a net inflow of $340 million, following its highest single-day inflow of $631 million on February 13th. Since the launch of the U.S. Bitcoin ETF on January 11th, total net inflows into Bitcoin ETFs have reached $4.11 billion, signaling increasing interest from ETF issuers in cryptocurrencies.

In contrast, Senior Bloomberg ETF analyst Eric Balchunas highlighted a $2.39 billion outflow from Gold ETFs so far in 2024. Meanwhile, market pundits speculate that the shift towards Bitcoin ETFs may be causing the outflow in Gold ETFs. Analysts anticipate Bitcoin encroaching on Gold’s market share sooner than expected, with Bitcoin steadily closing the gap on Gold as a sound money asset.

Source: Eric Balchunas, X

However, according to Eric Balchunas, the influx into Bitcoin ETFs doesn’t necessarily signal a mass migration from gold to Bitcoin but rather reflects a broader trend driven by equity FOMO.

Bitcoin’s Surge Threatens Gold Dominance

Data from on-chain analytics provider Checkmate suggests that Bitcoin is gradually encroaching on Gold’s territory as the premier sound money asset. Bitcoin’s market cap, currently representing 15% of the total investment-grade market cap, indicates a promising future in the realm of safe-haven assets.

Meanwhile, analysts like Bitcoin Munger highlight the significant inflows into Bitcoin ETFs juxtaposed with a noticeable absence of Gold in top asset inflows, signaling a shifting tide in traditional safe-haven investments. In a recent statement, Bitcoin Munger predicts Bitcoin’s imminent dominance over Gold, fueled by substantial outflows from Gold ETFs.

In addition, Adam Back, Co-founder and CEO of Blockstream, echoes this sentiment, suggesting that Bitcoin might outpace Gold’s decline faster than previously projected. With Bitcoin reclaiming a $1 trillion market cap, analysts anticipate heightened competition between Bitcoin and Gold in the foreseeable future.

Meanwhile, this data-driven narrative underscores the evolving dynamics of traditional safe-haven assets and the disruptive potential of Bitcoin in reshaping the global financial landscape. As investors weigh their options in uncertain times, the battle between Bitcoin and Gold intensifies, setting the stage for a decisive showdown in the realm of sound money assets.

Notably, as of writing, the Gold Futures was up 0.08% to $2,005.90, while the Bitcoin price rose 2.07% over the last 24 hours to $52,171.90.

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