Key Points
- The BTC/Gold index saw a 12% increase on November 6, 2024, after Trump’s presidential election victory.
- Experts predict Bitcoin could reach $80,000 by the end of 2024 as investors shift from gold.
The BTC/Gold index experienced a significant surge of 12% on November 6, 2024, in response to Donald Trump’s recent win in the US presidential election.
This increase was notably Bitcoin’s largest single-day rise against gold since February 2022.
Bitcoin Gains Popularity Over Gold
The increase in the BTC/Gold index suggests that Bitcoin might be becoming more popular among investors than gold.
The magnitude of the recent jump in the BTC/Gold ratio could indicate this is more than just a reaction to political news.
Experts believe that the current economic climate has investors seeking better methods to safeguard their wealth.
This could mean a shift of capital from gold to Bitcoin is already underway.
For a long time, gold was viewed as a “safe haven” investment tool.
However, Bitcoin’s recent performance suggests it may have taken over that role from gold.
Data from TradingView, as confirmed by CoinDesk, shows that the BTC/Gold index had been in a declining trend for most of 2024, with gold being more favored.
However, this trend was broken on November 6, signaling a renewed upward trend for Bitcoin over gold.
Crypto analyst Noelle Acheson pointed out, “The downtrend favoring gold appears to be reversing, as investors now seek safer avenues in assets like Bitcoin.”
Trump’s Pro-Crypto Advocacy Fuels Optimism
Trump’s victory has undoubtedly brought a positive outlook to crypto.
His repeated pro-crypto advocacies have given hope to investors, who anticipate his administration will establish a regulatory framework that favors digital assets.
The broader implication is that the anticipated regulatory clarity under Trump’s administration could lead to substantial capital flowing into the crypto sector, potentially boosting Bitcoin’s value.
Experts share this optimism, predicting that Bitcoin could reach a noteworthy $80,000 by the end of 2024, as investors continue to move away from gold.
Gold is expected to face further pressure due to expected high interest rates under Trump’s presidency, making Bitcoin potentially more attractive.
While the future is uncertain, the growing interest in Bitcoin as a hedge asset signals a possible shift in investor preferences, especially under a US administration that may openly support cryptocurrencies.
