BITCOIN IS "DIGITAL GOLD" - BUT WHY ARE THE TWO GOING IN OPPOSITE DIRECTIONS?
People keep saying "Bitcoin is digital gold", but in reality, these two siblings seem as different as water and fire lately. Last year, gold soared while Bitcoin sank. For the past three weeks, Bitcoin has been skyrocketing, while gold is deflating. Why is this deception happening?
The reason is not that one is better than the other, but because of the flow of money and the context:
"Sharks" are different: Gold is mainly in the hands of traditional big players. Whenever the market shakes, if they lack cash to cover losses elsewhere, they mercilessly dump gold. As for Bitcoin? It is firmly held by the "diamond hands" (holding on until death), ETFs, and companies are accumulating. The leveraged players burned out months ago, so now there’s no pressure to sell!
Those at the top, those at the bottom: Gold has risen over a long stretch, with many waiting to take profits. Bitcoin is creeping up from a low base, with few wanting to sell, while new money is flowing in, making the outlook brighter.
24/7 Online Market: Bitcoin operates 24/7 globally, running as fast as lightning, with "F0" money from ETFs pouring in. Gold is already held by many, with no new money breaking through.
Bitcoin and the "bipolar disorder"
The market is being stretched by two forces: the FED tightening money (suppressing risky assets) and geopolitical instability (pumping safe-haven assets). Bitcoin is stuck in the middle and is playing a dual role:
When money runs out, Bitcoin behaves just like tech stocks (risky assets).
When the world is unstable, Bitcoin tries to act as a safe haven. (And currently, the "safe haven" side is prevailing).
Bitcoin is in its adolescence. It is no longer a purely risky asset, but it is not yet mature enough to be $BTC .
People keep saying "Bitcoin is digital gold", but in reality, these two siblings seem as different as water and fire lately. Last year, gold soared while Bitcoin sank. For the past three weeks, Bitcoin has been skyrocketing, while gold is deflating. Why is this deception happening?
The reason is not that one is better than the other, but because of the flow of money and the context:
"Sharks" are different: Gold is mainly in the hands of traditional big players. Whenever the market shakes, if they lack cash to cover losses elsewhere, they mercilessly dump gold. As for Bitcoin? It is firmly held by the "diamond hands" (holding on until death), ETFs, and companies are accumulating. The leveraged players burned out months ago, so now there’s no pressure to sell!
Those at the top, those at the bottom: Gold has risen over a long stretch, with many waiting to take profits. Bitcoin is creeping up from a low base, with few wanting to sell, while new money is flowing in, making the outlook brighter.
24/7 Online Market: Bitcoin operates 24/7 globally, running as fast as lightning, with "F0" money from ETFs pouring in. Gold is already held by many, with no new money breaking through.
Bitcoin and the "bipolar disorder"
The market is being stretched by two forces: the FED tightening money (suppressing risky assets) and geopolitical instability (pumping safe-haven assets). Bitcoin is stuck in the middle and is playing a dual role:
When money runs out, Bitcoin behaves just like tech stocks (risky assets).
When the world is unstable, Bitcoin tries to act as a safe haven. (And currently, the "safe haven" side is prevailing).
Bitcoin is in its adolescence. It is no longer a purely risky asset, but it is not yet mature enough to be $BTC .