In a World Where Gold Hits New Highs, Is Bitcoin Just the Jester? 😂💰

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What to know:

  • Lo and behold! The bitcoin-gold ratio has plummeted to its lowest since that fateful Nov. 14. 🥴
  • Gold, oh glorious gold, has rocketed up 10% this year, much to the delight of those seeking refuge and the Chinese who seem to have bottomless pockets. 💰
  • Meanwhile, the inflow of BTC‘s ETFs appears to be little more than a speculative game of “who blinks first?”

As the specter of a trade war fostered by the good ol’ U.S. looms ever larger, gold (XAU) stands tall as the gallant knight while bitcoin (BTC) flounders like a fish out of water. The fallout? An inevitable descent in the glittering bitcoin-gold ratio.

Ah! The ratio between our beloved bitcoin and gold by the ounce has dropped, resting at a humble 34 — an alarming dip from a peak above 40 last December. This dramatic plunge evokes memories of peak moments passed, oh how the mighty have fallen.

The radiant gold’s ascent to a record price of $2,877 per ounce is like watching a play unfold, driven by rising fears amidst a tapestry of escalating trade tensions. Who knew metal could have such a captivating plot? 📈

And let us not overlook the ever-comedic tariffs, with futures prices now soaring above spot prices — you wouldn’t want to fly back without your gold, right? It seems traders are racing to stuff as much gold as possible onto those U.S.-bound planes, while JPMorgan prepares to send $4 billion worth of gold bullion to New York. What a generous gift! 🎁

As for bitcoin, it appears that inflows into U.S.-listed spot ETFs are a recipe for arbitrary bets rather than a steadfast investment strategy, much like believing in luck alone at a casino.

Markus Thielen of 10x Research likens the ETF buying frenzy to a game of poker where some players are just playing for fun, perhaps offset by some rug-pulling through futures selling. Who wouldn’t want to keep a party interesting with a little risk? 🎉

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2025-02-05 15:42