Did Gold Outperform Bitcoin (BTC) in the Last 2.5 Years?
Peter Schiff recently brought attention to the fact that gold has been outperforming Bitcoin over the past two and a half years. This observation becomes more prominent as gold also surpasses the S&P 500’s performance year-to-date, highlighting the current economic situation.
Gold’s strength lies in its stability and is often viewed as a safe-haven asset. Investors tend to store their assets in gold during times of market uncertainty. In the past 2.5 years, gold has consistently increased in value, solidifying its reputation as a strong and secure investment. On the contrary, Bitcoin’s journey has been much more volatile, experiencing significant ups and downs. This volatility, however, presents both opportunities and considerable risk exposure.
Comparing the two, gold’s price has continuously risen, currently reaching around $2,329.57 per ounce. It has also surpassed its 50-day and 100-day exponential moving averages (EMAs), indicating continued strength. On the other hand, Bitcoin, currently priced at around $69,045, has experienced more fluctuations and is currently facing resistance at $70,000.
Looking ahead, for gold to sustain its positive trajectory, it would need to maintain support above its 50-day EMA of $2,184. Similarly, for Bitcoin to regain bullish momentum, it would need to break through the current resistance levels and maintain support above the $67,316 mark. Failure to do so could result in support at the 50-day EMA, around $64,000.
Bitcoin’s potential for high returns attracts investors who are willing to embrace more uncertainty, which is the opposite approach taken by gold investors. Gold and Bitcoin investors employ different strategies, and it is not advisable to directly compare the two. Bitcoin offers extreme risks and volatility exposure, while gold can be utilized as a tool to safeguard against inflation during economic downturns.