30s Summary

Bitcoin had its biggest single-day jump against gold since February 2022, potentially indicating significant gains are to come. Some experts believe individuals might move their money from gold to Bitcoin as the latter becomes the more attractive asset. This change comes as Donald Trump’s victory in the US election saw Bitcoin’s ratio spike by 12%, ending an eight-month dip. Increased regulation clarity, increased institutional adoption, and possible creation of a strategic Bitcoin reserve under Trump’s presidency may also strengthen Bitcoin’s position. Conversely, gold’s appeal may decrease with anticipated high-interest rates under a Trump administration.

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Wow! Bitcoin against gold just had its biggest single-day jump since February this year. Looks like Bitcoin is setting up for some significant gains. There’s a chance we might even see money being moved from gold to Bitcoin.

One week ago, CoinDesk said that Bitcoin’s price increase is likely to accelerate as gold becomes less attractive. Some experts think that folks might start moving their money from gold into Bitcoin, which tops the leaderboard in terms of crypto market value.

It seems that the key moment we’ve been waiting for might be just around the corner, giving strength to the argument that Bitcoin could hit $80,000 or even more by the end of the year. This is due to movements in the comparison between Bitcoin’s price for each coin and the price of an ounce of gold.

When Donald Trump, the pro-Bitcoin Republican candidate, won the US presidential election on Wednesday, this ratio spiked by 12%, marking the most significant one-day surge in Bitcoin outperformance compared to gold since February 28, 2022. That’s what TradingView, a charting platform, tells us anyway.

Even more exciting is that this boost on Wednesday marked the end of a dip that lasted for eight long months, as traced by a line linking the highs of March and June.

So, this big break suggests that Bitcoin is back in the game, ready to outdo gold once again. And part of this might be due to investors moving their money from gold to Bitcoin.

Noelle Acheson, author of the “Crypto Is Macro Now” newsletter, explains that looking at the Bitcoin to gold ratio shows that the recent trend of gold outperforming since March is starting to turn around. With global investors looking to hedge against money devaluation and hoping to capitalize on the “Trump market play”, Bitcoin could be in for a real treat.

Add to this the expected improvement in regulation clarity for digital assets and the growing adoption by institutions under Trump’s potential presidency. Some are also suggesting that Trump might create a strategic Bitcoin reserve.

As for gold, its future appears to be linked to expectations of higher interest rates under a Trump administration, which could make it less enticing. So, stay tuned!