The dynamics of gold price growth, which gained momentum last year, continues to spiral up to historical highs - gold has become one of the fastest-growing assets among all asset classes. And this applies not only to gold - the flight of investors to safe assets coincided with the flight of crypto investors to safe crypto assets.
Soon it will be half a year since crypto investors have been disappointed in what seemed to be the most reliable crypto asset - $BTC
This token, on which many relied, has become too dependent on macroeconomic factors, leading to its significant decline and uncertainty regarding its future. It is no secret that a huge part of the crypto market is tied to the price of BTC, which has led to the market plummeting into the abyss for several months now.
All of this applies not only to the crypto market - all financial markets in the world are down today, however, while other markets (stocks, futures, commodities) are correcting based on the real value of the assets behind these markets, the crypto market seems to depend solely on macroeconomic factors today.
Traditionally, during such economic upheavals, investors move their money into safe assets - gold, silver, diamonds, real estate, certain types of securities with government guarantees, etc. This provides a chance not only to avoid losing money but also, under certain circumstances, to remain profitable, as the value of such assets increases due to demand during global uncertainty.
This has always been the case throughout human history and nothing new has happened in modern times. Gold has broken its all-time price record and today reached nearly $4900 per ounce. The trend of rising gold prices and flight to safe assets has also affected the crypto market - the price $PAXG is currently $4879 for 1 token, which is backed by an ounce of physical gold, while $XAU is trading at $4856.
According to Etherscan, there are 70 thousand and 20 thousand wallets holding PAXG and XAUT respectively, which shows a growth of two times and seven times over the year, respectively. The trading volume of these coins has also increased several fold.
According to analysts, considering the overall situation in the world, the dynamics of gold price growth does not plan to stop, and its price will be approximately $5500-$6000 in the middle of the year.
All of this demonstrates the maximum fear of investors regarding their assets and their attempts to preserve and, if possible, multiply them. In my personal opinion, during times of global upheaval, converting part of assets into digital gold like PAXG, to protect one’s funds, is a good idea, but here everyone should decide for themselves and always DYOR - let’s hold on, we will survive this storm 🫱🏼🫲🏻
#GoldSilverAtRecordHighs #GOLD #PAXG
