YEREVAN (CoinChapter.com) — Gold price has hit a record high, crossing the $2,130 mark per ounce, according to market reports. The unprecedented surge in the value of popular assets comes from a combination of factors. These include ongoing geopolitical tensions and shifts in the US monetary policy. Bitcoin (BTC), the largest cryptocurrency by market cap, surged above $40,000
Gold Price High is in; More Rallies Ahead?
The recent price surge could be just the beginning of more rallies ahead. Analysts predict gold prices will reach new highs in 2024, mainly sustaining levels above $2,000. Such forecasts partly rely on expectations of a potential weakening of the US dollar.
Moreover, experts suggest the surge is a reaction to growing anticipations of a policy shift from the US Federal Reserve. Market watchers predict more interest rate cuts by the Fed next year. Such a prognosis has impacted the supply-demand equation for Gold.
Furthermore, according to a recent CNBC report, the renewed conflict between Israel and Palestine has increased demand for Gold as a safe-haven asset.
Traditionally considered a reliable store of value, Gold tends to perform well during economic and geopolitical uncertainty periods. Economists expect the price of gold to reach $2,200 by the end of next year.
Bitcoin (BTC) Price Crosses $40,000
Bitcoin’s (BTC) price surged to a nearly 20-month-high above $40,00 on the heels of the Gold Price surge. Moreover, the development comes as the crypto industry battles recent crackdowns by the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).
Besides the perceived correlation between Bitcoin and Gold, the digital asset’s price rally comes amid growing expectations of a spot Bitcoin ETF approval.
In the past 24 hours, BTC price crossed the $42,100 mark, taking year-to-date surges to 155%. When writing, the largest cryptocurrency by market cap exchanges hands a little short of $41, 700.
With Gold finding favor among investors as a safe investment, Bitcoin has also established itself as a hedge against tough economic times.
The month-long trial and eventual guilty verdict of FTX founder Sam Bankman-Fried (SBF) has also brought some credibility back into the crypto industry.
Moreover, institutional investments have welcomed the recent actions against Binance and its CEO, Changpeng Zhao (CZ).
“It appears that law enforcement and regulatory authorities worldwide are cracking down on executives and companies of digital currencies. This greater regulatory scrutiny is seemingly appealing to investors who are piling into the likes of Bitcoin. It would also be attractive to institutional investors who bring with them huge amounts of capital,”
deVere Group’s CEO Nigel Green argues.
Currently, at least nine asset management firms, including BlackRock, WisdomTree, and Valkyrie, are waiting for approval of Spot Bitcoin ETF from the Securities and Exchange Commission. Experts believe there is a 90% chance that approval will come by January 2024.
Should that happen, BTC price will surge even further, making a run closer to its all-time high of nearly $69,000 from Nov. 10, 2021.
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