Reasons Bitcoin Surpasses Gold and Returns to US$70 Thousand
Analyst Wintermute Jasper De Maere noted several factors that are bringing Bitcoin (BTC) back to the US$70 thousand trading area. The main reason is that the President of the United States (US) Donald Trump paused his military attacks on Iran for 5 days.
Trump's initiative is an effort to negotiate a ceasefire. Additionally, ship traffic is starting to resume activities in the Strait of Hormuz, which is heavily guarded by Iran during its passage.
These events have allowed the Bitcoin exchange-traded fund (ETF) market to breathe a sigh of relief with an inflow of US$167 million in a single day.
Interestingly, gold has actually corrected more than 10% due to the US dollar index breaking the 100 mark. Meanwhile, Bitcoin, known for its volatility, has managed to hold steady amidst the conflict between Iran and the US.
"Bitcoin derivatives remain stable, with overall ETF flows positive. The performance gap that was once very large compared to gold has narrowed significantly in recent weeks; it is still too early to make a full rotation, but the structural comparison is becoming increasingly relevant," he noted, citing his official source on Wednesday (25/03).
Disclaimer Alert. Not Financial Advice (NFA). Do Your Own Research (DYOR).
