Bitcoin and Gold: Which One is the Safe Haven of the Future?

Volatility in Global Markets

Last week, the global financial markets experienced significant fluctuations that caught investors' attention. Rapid price movements, particularly in precious metals and cryptocurrency assets, led to considerable changes in investors' risk perceptions. In this context, gold, known as a traditional safe haven, closed the week in positive territory, attracting attention.

Fluctuations in Gold Prices

During the week, gold futures managed to dip to 4,402 dollars but rebounded, closing with a 1.41% increase at 4,964 dollars. Buying activity played a significant role in the upward momentum of gold prices, increasing demand for this precious metal among investors.

General Developments in the Cryptocurrency Market

On the other hand, the cryptocurrency market performed more weakly compared to gold. Bitcoin lost 8.3% of its value on a weekly basis, falling from 76,888 dollars to 70,500 dollars. During the week, Bitcoin dropped as low as 59,930 dollars, but with limited buying responses, it climbed back above 70,000 dollars. However, whether these movements will be sustainable remains a topic of discussion among investors.

Comparison of Bitcoin and Gold

This divergence in the markets has brought the dynamics between Bitcoin and gold back into focus. According to evaluations, Bitcoin appears to offer a more attractive risk-return profile for long-term investors. JP Morgan analysts have calculated Bitcoin’s production cost at around 87,000 dollars, noting that current prices remain below this level.

The Impact of Institutional Investors

In assessments made by Deutsche Bank, the influence of institutional investors on the overall decline in the cryptocurrency market is emphasized. According to reports, more than 3 billion dollars in outflows were experienced from Bitcoin ETFs traded in the U.S. in January 2023. This figure reached 2 billion dollars in December and 7 billion dollars in November.