Bitcoin is sulking. Despite optimistic predictions, the flagship crypto is struggling to break through the $60,000 mark. This status quo is worrying, especially since there is no shortage of bullish levers. However, even if gold flirts with historic highs, Bitcoin remains the top performer in 2024. But why do central banks prefer to accumulate tons of gold rather than turn to Bitcoin?
Bitcoin on a knife edge
Bitcoin has remained intriguing this year, oscillating close to $60,000 without managing to cross this critical threshold. Since its peak in March, the value of the Bitcoin fell 22%leaving investors wondering whether it will ever resume its march forward. There are even speculations that the September storm is approaching for the queen of cryptos.
However, it is not for lack of enthusiasm on the part of crypto promoters. Despite the launch of the first exchange-traded funds for bitcoin In the United States, the flagship crypto remains mired in uncertain dynamics.
- Bitcoin rise in 2024: +37%;
- Comparison with S&P 500: +18%;
- Gold: +23%, reaching $2,525/oz in August.
Gold supporters like Peter Schiff do not fail to emphasize that Bitcoin gains were only realized at the beginning of the yearbefore stagnating. Yet despite these fluctuations, BTC continues to outperform gold in terms of annual performance.
Are Central Banks Shifting From Crypto to Gold?
While Bitcoin is floundering, Central banks rush to gold. In the first half of 2024, they purchased a record 483 tonnes of this precious metal, surpassing the previous record of 2023.
The choice of gold, perceived as a neutral and stable assetreflects a growing distrust of traditional reserve assets, particularly those in dollars.
Nations like Poland, India and Turkey are massively increasing their gold reserves, following a global trend that sees gold establishing itself as the safe haven par excellence.
As pointed out Spencer Hakimian” distrust of Western assets ” pushes these countries to turn to gold, a non-volatile and neutral asset.
Gold, with its 23% increase in 2024becomes the fallback solution in the face of growing uncertainty in global markets.
The rise ofa gold-backed stablecoin or stable crypto by the BRICS could further strengthen this trend, while bitcoin, despite its advantages, remains on the fringes of central bank strategies.
Faced with a hesitant bitcoin, experts remain divided: an imminent collapse or a spectacular rebound? Bets are open, but uncertainty reigns supreme.
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