An unconventional piece of data, buying gold during chaos???
Gold has just set a record not seen in 106 years. It has fallen for 10 consecutive days; the last time this happened was February 1920.
From the high in January, gold has dropped 27%, from $5600 to a low of $4090.
Last week, it fell 11% in a single week, the worst week since 1983. CNN reported that since the outbreak of war, gold has dropped over 14%.
In the face of a real war, the world's oldest safe-haven asset has collapsed.
But BTC has not.
While gold plummeted 11% last week, BTC ETF saw net inflows for four consecutive weeks, with $95 million flowing in last week. Today, BTC is around $70,500, not great, but at least not bad.
Charlie Morris, Chief Investment Officer of ByteTree, calculated a figure:
In 2017, 1 BTC first exceeded the price of 1 ounce of gold.
In 2019, it was worth 2.7 ounces. During the pandemic crash in 2020, it was worth 3.4 ounces. After the FTX collapse, it was worth 9.1 ounces. In February of this year, it was worth 12.4 ounces.
Now, 1 BTC is worth 16 ounces of gold. The ratio of BTC to gold has increased by 30% from its low.
To be honest, this set of data has made me think for a long time.
As we reach today, we also question whether Bitcoin is truly digital gold; previously, more people found it a joke. Gold has a 5000-year history, while BTC is only 16 years old. Behind gold is central bank reserves, while behind BTC is a bunch of web3 enthusiasts and Saylor.
But what happened this week is:
The war has lasted four weeks, the Strait of Hormuz is closed, oil prices soared to $112, and 20% of the world's oil supply is interrupted.
This is the perfect safe-haven scenario described in gold textbooks. As a result, gold has set the longest consecutive decline in a century, while BTC has held its ground.
Gold has just set a record not seen in 106 years. It has fallen for 10 consecutive days; the last time this happened was February 1920.
From the high in January, gold has dropped 27%, from $5600 to a low of $4090.
Last week, it fell 11% in a single week, the worst week since 1983. CNN reported that since the outbreak of war, gold has dropped over 14%.
In the face of a real war, the world's oldest safe-haven asset has collapsed.
But BTC has not.
While gold plummeted 11% last week, BTC ETF saw net inflows for four consecutive weeks, with $95 million flowing in last week. Today, BTC is around $70,500, not great, but at least not bad.
Charlie Morris, Chief Investment Officer of ByteTree, calculated a figure:
In 2017, 1 BTC first exceeded the price of 1 ounce of gold.
In 2019, it was worth 2.7 ounces. During the pandemic crash in 2020, it was worth 3.4 ounces. After the FTX collapse, it was worth 9.1 ounces. In February of this year, it was worth 12.4 ounces.
Now, 1 BTC is worth 16 ounces of gold. The ratio of BTC to gold has increased by 30% from its low.
To be honest, this set of data has made me think for a long time.
As we reach today, we also question whether Bitcoin is truly digital gold; previously, more people found it a joke. Gold has a 5000-year history, while BTC is only 16 years old. Behind gold is central bank reserves, while behind BTC is a bunch of web3 enthusiasts and Saylor.
But what happened this week is:
The war has lasted four weeks, the Strait of Hormuz is closed, oil prices soared to $112, and 20% of the world's oil supply is interrupted.
This is the perfect safe-haven scenario described in gold textbooks. As a result, gold has set the longest consecutive decline in a century, while BTC has held its ground.