2 min read –
The re-election of Donald Trump as President of the United States has introduced significant shifts in global financial landscapes, particularly in digital assets.
Trump’s administration, emphasizing a pro-crypto stance, has fueled the growth of Bitcoin and blockchain technology, marking a departure from the policies of the Biden era.
These changes have sparked debates over the comparative stability of traditional safe-haven assets like gold and the burgeoning appeal of digital alternatives such as Bitcoin.
Bitcoin has gained substantial traction in 2024, with its value exceeding the symbolic $100,000 mark today and achieving over 120% year-to-date increase.
This performance has outpaced gold, which, while experiencing record highs earlier this year, has seen its growth relatively stagnate amid dollar strength driven by Trump’s proposed corporate tax cuts.
Analysts like Putu Agus Pransuamitra from Monex Investindo point out that the correlation between Bitcoin and gold remains significant, with Bitcoin often mirroring gold’s upward trends but now emerging as a stronger contender.
Key factors bolstering Bitcoin’s rise include increased institutional investment through spot Bitcoin ETFs, which recorded an inflow of USD 6.5 billion in November 2024 alone.
Furthermore, Trump’s proposal to establish a Bitcoin Strategic Reserve has captured market attention, drawing parallels to El Salvador’s pioneering move to adopt Bitcoin as a national reserve asset.
However, this policy’s potential hurdles and its impact on Bitcoin’s long-term trajectory remain areas of speculation.
Despite Bitcoin’s bullish momentum, gold continues to maintain its position as the largest global asset by market capitalization, valued at USD 17.8 trillion.
Its appeal as a stable investment is underpinned by consistent demand from central banks, which have been stockpiling record amounts of gold to hedge against uncertainties.
For instance, global central banks accumulated a record 1,080 tons of gold in 2022, with this trend persisting into 2024.
Investment strategies like dollar-cost averaging (DCA) have gained popularity among both gold and Bitcoin investors.
This approach mitigates risks associated with market volatility by allowing consistent investments over time, ensuring an average cost of acquisition.
Experts like Oscar Darmawan, CEO of Indodax (a leading Indonesian crypto-assets platform), recommend DCA for both traditional and digital assets to capitalize on market opportunities while managing risks effectively.
As global markets evolve, the rivalry between gold and Bitcoin intensifies.
While Bitcoin’s rapid growth reflects its increasing acceptance as a digital safe-haven asset, gold’s timeless stability continues to attract conservative investors.
Balancing investments between these assets, coupled with strategic approaches like DCA, offers a prudent pathway for navigating today’s dynamic financial environment.
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Source and full credit: Bloomberg Techno Zone and video podcast dated Dec 3rd, 2024 hosted by Pandu Sastrowardoyo.
Picture : journalducoin.com
The video podcast is available on replay, it is in BAHASA only. The link is : https://youtu.be/FdRKE0VZQo0?si=CR8EiVFMNbzXESix
The link to the Bloomberg Techno Zone website is : https://www.bloombergtechnoz.com/detail-video/787/trump-effect-dolar-perkasa-bitcoin-menggila-emas-keok