The leading cryptocurrency by market capitalization surged to $30,797 during Asian trading on Monday, reaching its highest since July 15, according to CoinDesk data.
Bitcoin prices are up 14% this month, while gold is up only a modest 6.7%. Notably, gold gained traction in the week ahead of Bitcoin due to rising tensions between Israel and Hamas and continued speculation about the end of the Fed’s tightening cycle, which pointed to the possibility of inflation.
Greg Magdini, director of derivatives at Amberdata, said: “Interest rates are currently the main driver of the macroeconomic landscape, but interestingly, interest rate-sensitive assets such as gold are also showing bullish momentum… This is a positive sign for BTC.” Send an email.
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Magaddini further explained that historically, wartime spending has tended to spark inflation, despite strong U.S. economic conditions, but the Fed also signaled it would pause increases. This dynamic is good for gold and Bitcoin, especially against the backdrop of growing optimism surrounding Bitcoin ETFs and the ongoing Ripple lawsuit.
“Bitcoin remains a more attractive asset given its perfect portability, inflation-hedging capabilities, and agnostic stance against government wealth preservation actions. Combined with the positive sentiment from the BTC ETF and Ripple lawsuit, this has a positive impact on Bitcoin as a whole seems to be a very optimistic development,” Magadini stressed.