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Bitcoin Outpaces Gold Post-Election as Investors Flock to Crypto

07.11.2024 19:30 1 min. read Alexander Zdravkov
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Bitcoin Outpaces Gold Post-Election as Investors Flock to Crypto

Following the results of the U.S. presidential election, there has been a noticeable shift in investment preferences, with Bitcoin gaining ground over gold.

The BTC-Gold ratio saw a sharp 12% increase on November 6, the day after Donald Trump’s victory, marking Bitcoin’s most significant gain against gold since February 2022, as per TradingView data.

This rise in Bitcoin’s value highlights a growing trend of capital flowing from traditional safe-haven assets like gold toward the digital currency. Analysts are now predicting that Bitcoin could reach up to $80,000 by year-end, fueled by recent upward momentum and a decline in gold’s appeal.

The shift is largely driven by macroeconomic factors, including currency depreciation and the expectation of more crypto-friendly policies under the Trump administration. According to Noelle Acheson, author of Crypto Is Macro Now, the reversal of the gold market’s downtrend that began in March marks a critical moment for Bitcoin. She adds that global investors are taking note of the changing dynamics, and Bitcoin’s continued growth seems promising.

The transition signals the end of gold’s dominance, as more investors move towards BTC, particularly with the potential for a Bitcoin reserve under the Trump administration and anticipated higher interest rates that could weigh down gold’s attractiveness.

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