Interest in the precious metal is declining rapidly as bitcoin’s status as digital gold strengthens.
Bitcoin has gained ground at $59,500 as the appeal of gold, which is already nearing a nine-month low, declines. According to Bloomberg, the precious metal is nearing its first quarterly decline since 2018.
Gold price by year
Interest in gold is falling because of the potential for global economic recovery, writes the publication. In recent weeks, the price of gold has mostly declined without any chance of recovery.
Even stronger pressure on the position of gold by international investors who have reduced assets in the funds by 10%. According to Bloomberg, the results of trading on March 29, assets of exchange-traded funds (ETF) declined by 49,000 ounces (1.5 tons), to 3,110 tons.
Bitcoin becomes a profitable version of gold
Bitcoin is often compared to gold in its role as an inflation hedge. However, the cryptocurrency, unlike the precious metal, holds its position.
At the time of writing, the bitcoin price in the BTC/USDT trading pair is $57,830. Thus, bitcoin is gradually returning to its historical high of $61,316. Moreover, the capitalization of the entire cryptocurrency market is setting new records at $1.885 trillion.
The fact that bitcoin has become more attractive than gоld is also evidenced by Google searches. For example, at the beginning of the year, the number of searches for bitcoin in the English-language segment overtook gоld by a factor of two for the first time since the 2017 rally.
However, despite the price increase, bitcoin and its forks performed the worst in percentage terms. Read about what tokens were the leaders in trading in the first quarter in the BeInCrypto article.