There is a sharp uptick in the number of investors opting for Bitcoin over gold, data from Bloomberg Intelligence reveals.
Bitcoin replacing the Old Guard
A snapshot shared by Mike McGlone, a Senior Commodity Strategist at Bloomberg Intelligence, on Mar 8 points to convincing statistics showing an accelerated influx to Bitcoin in recent month.
The Bitcoin to gold ratio is now over one while the total known ETF holding of gold continues to flat-line and droop in recent days. Coinciding with this is the increasing volatility of Bitcoin to gold over the last three months.
As per statistics, the volatility of the two store-of-value assets has been expanding since Q4 2020, much to the crypto community’s excitement.
Superior Performance, BTC/USD May Reach $100k
Bitcoin is one of the top-performing assets. The coin has added an astounding 75 percent in the past two months, printing a new all-time high.
After breaching $20k, the Bitcoin price has since more than doubled to spot rates and looks likely to register a new all-time high.
Analysts, including the former Communications Director at the White House—Anthony Scaramucci, projects the BTC/USD price to reach $100k in the coming few months.
Other noteworthy believers include analysts from Citi and Anthony Pompliano. They predict the Bitcoin price to surge to over $100k by the end of the year.
The Institutional Push
Accompanying this expansion is the entry of institutional-grade investors. Unlike the great crypto rally of late 2017, convincing statistics reveal the presence of deep-pocketed investors moping out the supply of coveted Bitcoin.
Over the last few months, Tesla announced their support for Bitcoin, purchasing $1.5 billion.
At the same time, MicroStrategy, a NASDAQ-listed firm, now controls over $2.1 billion of BTC and is the largest public company with digital gold exposure.
Meanwhile, Square recently bought $177 million more of BTC.
There are rumors that Twitter might also buy Bitcoin. Their Chief Financial Officer (CFO) recently said they would oblige if any of their employees request payment in Bitcoin.
Gold Luster Fading
On the other hand, gold prices are suppressed, under-performing BTC over the last three months. The plunge below the psychological $1.7k due to rising bond yields and a confident FED weighs down gold prices.
As BTCManager reports, a recent survey in Australia shows that BTC is more popular than gold.