While the competition between Bitcoin and gold continues, BTC supporters argue that Bitcoin is becoming more and more adopted as digital gold.
At this point, while BTC supporters stated that Bitcoin will gradually replace gold, a new Bitcoin-gold themed report came from Coinbase.
At this point, Coinbase said that the increasing adoption of Bitcoin as digital gold could attract new investors.
The report written by Coinbase analyst David Han also stated that the FED's cautious approach to interest rate cuts led to a decline in cryptocurrencies along with risky assets.
David Han stated that the FED's cautious approach reflected positively on gold, and that gold performed better after the FED's cautious stance.
“Gold appears to have performed better after the FED took a cautious stance on the pace of future interest rate cuts.
While this stance of the FED brings a decline to the BTC and cryptocurrency markets, the increasing acceptance of Bitcoin as digital gold may attract new investors to the market.
As a result, we think dips are/will be bought more aggressively than in previous cycles, even if price volatility continues.”
Finally, the analyst evaluated the impact of spot Bitcoin ETFs. The analyst stated that there was more capital inflow to BTC after the launch of ETFs and that this increased capital inflow could cause less volatility.
Analyst David Han said capital opened by spot ETFs represents the most fundamental change between the previous 2020-21 cycle and today's cycle.
*This is not investment advice.
