As Bitcoin (BTC) maintains its spectacular positive trend, the top cryptocurrency is taking the lead over gold based on its significant gains.
According to Glassnode’s weekly analysis titled “The Capital Waterfall,” the leading on-chain metrics provider revealed that both Bitcoin (BTC) and Ethereum (ETH) had increased significantly in value against gold and the US Dollar (USD).
According to the research, “BTC has appreciated +93% relative to gold in 2023, whilst ETH is up 39% in gold terms. This strong performance comes amidst increasing global uncertainty, likely catching the eye of many traditional investors.”
Bitcoin and gold are frequently pitted against one another in the race for safe haven status, with some analysts claiming that BTC is the digital equivalent of gold. For example, major cryptocurrency Coinbase previously stated that Bitcoin was digital gold, and the halving event scheduled for 2020 would make a solid case for the top cryptocurrency being a store of value.
As a result, this competition is unlikely to abate anytime soon, as investors continue to seek assets regarded to be inflation hedges.
Glassnode also stated that Bitcoin’s dominance was skyrocketing, with it controlling more than 53% of the crypto market worth. This was a significant increase from the cyclical lows of 38% in late 2022.
As Bitcoin continues to make headlines due to its incredible run, which has seen the pioneer cryptocurrency reach highs of $38,000, huge entities appear to be playing an important part in this rally.
According to CryptoQuant, large-scale selling liquidity was still in jeopardy since selling pressure on the BTC network was coming from firms owning between 10 and 100 BTC.
The leading analytics provider explained, “Whales in the 1k~10k range that led the downward trend are still relatively quiet. Entities still exerting selling pressure are in the range of 10 to 100 BTC.”
According to ZyCrypto, the BTC market’s rising momentum might be attributed to the eight-day window period during which the United States Securities and Exchange Commission (SEC) could potentially approve all twelve pending BTC exchange-traded fund (ETF) applications.
According to CoinGecko, Bitcoin has increased by 6.8% in the previous week to $37,200 at the time of publication.
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