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The Fed’s recent interest rate cut drove gold and bitcoin to all-time highs. As gold climbs above $2,629 an ounce and bitcoin attacks above $64,000, the question remains: which of these assets will fall first in the face of economic uncertainty?
Gold and Bitcoin: Battle of the Peaks After Rate Cut!
The recent interest rate cut by the Fed has had a significant impact on financial markets, especially gold and bitcoin. Gold hits a new all-time high, surpassing $2,629 per ounce, up 5%! While Bitcoin has seen a remarkable rise reaching over $64,000 with an increase of over 8%.
These increases are mainly due to falling interest rates, which have made non-yielding assets like gold and bitcoin more attractive to investors looking to hedge against inflation and economic uncertainties.
For the beginning of 2025, Wall Street analysts see the price of gold hovering around $2,700. As for Bitcoin, its price could be between $80,000 and $100,000 for the most optimistic and $70,000 for the most realistic. Which of the two will collapse first by then?
Who will collapse first?
The question of who will fall first between gold and bitcoin is a complex one. As a traditional safe haven, gold could be more resilient to economic fluctuations. However, despite its volatility, Bitcoin enjoys some appeal for investors looking for high returns and diversification of their portfolios.
In addition, Bitcoin’s underlying technology, blockchain, continues to attract attention for its potential applications outside of cryptocurrencies. Due to the resilience of gold and the growing popularity of Bitcoin, it is difficult to predict which one might fall first, as it will depend on many economic, technological and geopolitical factors.
With gold breaking above $2,629 and Bitcoin breaking above $64,000, it is hard to predict which will fall first. Economic fluctuations and political factors, such as the next US presidential election, will play a fundamental role in their development.
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The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.