Veteran commodities trader Peter Brandt has recently highlighted the prevalent struggles Bitcoin has faced against gold.
The digital asset, whose scarce supply and orange branding have seen it compared to the precious metal, has edged lower against the latter in recent weeks.
Reacting to the price action in an X post on Sunday, February 9, Brandt remarked that it was “very interesting” that Bitcoin could not seem to move clear of the precious metal.
He shared a daily chart of the Bitcoin to gold ratio, showing that the digital asset may be topping out against the precious metal. The chart shows a likely double-top formation at historical highs of 40 ounces per BTC after a multi-year Bitcoin rise.
Notably, after claiming a top of 38.5 ounces of gold on Jan. 30, the economic uncertainty triggered a massive price collapse, resulting in a drop to 33 ounces by Feb. 3. Since then, Bitcoin has struggled to recover from this level, currently changing hands at 33.85 oz.
The shifting dynamics come as the market appears to be deciding which asset is the true safe haven amid economic uncertainty, first due to inflation concerns and now amid trade war fears.
U.S. President Donald Trump has again fanned these flames of economic uncertainty by announcing that he will implement fresh import tariffs this week.
Digital Gold Status Still Out of Reach?
The contrast in the reaction of Bitcoin and gold to recent economic events suggests that despite the former’s rhetoric as digital gold, most investors continue to prefer the safety of the cold, hard metal’s decades-long history.
Whether this will change in the near future remains to be seen. Still, proponents of the digital asset are optimistic as several countries, including the U.S., are considering holding reserves of it.
Bitwise CIO Matt Hougan previously suggested that this could be the catalyst that sees Bitcoin take more market share from gold and soar to the $500,000 price point.
For context, Bitcoin’s market cap is roughly $2 trillion, compared to over $19 trillion for gold.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
