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Bitcoin Holds On As Gold Climbs – Is This The New Safe Haven Duo?
The world economy continues to be plagued by uncertainty, with trade relationships evolving, inflation still lingering in the shadows, and stock markets starting to show cracks. Amidst this chaos, it appears that investors are seeking refuge in hard assets like gold and Bitcoin (BTC). In fact, gold has hit a new all-time high of $3,300 on the charts, while Bitcoin remains steadfast above the $80k price level.
It’s not just gold that’s climbing, though. Metrics have revealed that 77% of Bitcoin holders are now in profit, with netflows indicating strong investor sentiment. In fact, it seems like investors are having a go at the cryptocurrency as an alternative store of value and hedge against potential losses in traditional markets.
Investors Seek Refuge in Assets That Preserve Value
As global financial policy remains unsettled and equities face potential declines, BTC is rapidly gaining traction as a ‘digital gold’ option. Bitcoin’s decentralized nature and worldwide liquidity are making it an attractive haven for investors seeking to weather the storm. And what about its recent performance during stock sell-offs? It recorded all-time high inflows and reduced unrealized losses – events that were followed by significant bullish rallies in the past.
The Last Time This Happened…
We saw a similar scenario play out when Bitcoin experienced such a surge in 2021 and 2022 bear markets. In those instances, a massive rally ensued. The fact that we’re seeing this narrative play out once again could potentially be setting the stage for a similar response. We’ve seen this before – remember 2021 and 2022? Those events were preceded by significant price increases.
Bitcoin’s Exchange Netflows Stand at an Unprecedented 52%
In addition to these metrics, our data is revealing that exchange netflows are now at a staggering 52%. This indicates that investors are withdrawing more BTC from exchanges than depositing it – a strong signal of the intent to hold onto their Bitcoin rather than sell.
77% Of All Bitcoin Addresses Are In Profit
Another crucial metric is the number of addresses in profit. As it stands, an astonishing 77% of all Bitcoin addresses have entered positive territory. Once investors become profitable, they tend to continue holding onto their assets, which further fuels the buying pressure and drives the price up.
Bitcoin’s Potential For Further Upside Momentum
If this new narrative of investors turning to Bitcoin as a store of value continues, it could see prices soar even higher. As long as economic uncertainty persists and faith in traditional markets remains unstable, I believe Bitcoin can continue to hold its own – potentially reaching new highs.
Source: https://ambcrypto.com/bitcoin-holds-on-as-gold-climbs-is-this-the-new-safe-haven-duo/
