With the bitcoin (BTC) price approaching $ 59,000, the relative value of gold is approaching its all-time high, which could indicate a new preferred store of value is emerging.

Similar to gold, bitcoin hit 34.94 grams on Tuesday. Gold versus BTC peaked at 35.35 grams on March 13 when Bitcoin surpassed $ 61,000.

Bitcoin continues to outperform gold by a wide margin. | Charts via BuyBitcoinWorldwide
Bitcoin’s value compared to gold has more than doubled in the past three months and nearly sevenfold since October 2020.

Meanwhile, gold futures fell below $ 1,700 an ounce on Tuesday on the Comex branch of the New York Mercantile Exchange. The price settled at $ 1,676.50, hitting a new three-week low. Since peaking at $ 2050 an ounce in August 2020, bullion has been correcting by about 18%.

2020 was a big year for gold as the yellow metal broke new records in all major currencies before falling $ 2,000 per dollar for the first time. Bars ended the year with a gain of about 22%. However, it was weak compared to Bitcoin’s 265% annual return.

With the recent $ 1.90 stimulus package fueling inflation concerns, assets like gold and bitcoin should in theory perform well as hedging investors from the dollar’s fall. However, the recent surge in bond yields may have made gold sparkle a little.

Others, even some well-known analysts such as Bloomberg’s Mke McGlone, believe that gold is losing ground over Bitcoin in the asylum battle. Earlier this month, McGlone tweeted:

“Gold will always have a place in jewelry and coin collections, but most indicators point to an acceleration in bitcoin replacing metal as a store of value in investor portfolios.”

Even JPMorgan, an organization that has long criticized Bitcoin, said the digital currency will take a share of the gold market. “The adoption of bitcoin by institutional investors has just begun, and institutional investors are very advanced in terms of gold,” said JPMorgan, a strategic analyst led by Nicholas Banegertzoglou in a report published in December 2020. structural headwinds in the coming years. ”

Bitcoin’s digital gold story continues to deepen its impact. The four-year deflation, which last occurred in May 2020, reduces the number of new bitcoins in circulation after each block is mined.

Source: CoinTelegraph