Gold Soars to New Highs as Bitcoin Breaks $64K: Will Both Continue Their Bull Run?

Date:

Gold Hits Record High Amid Fed Rate Cuts and Bitcoin Surge Above $64K

The price of gold has surged to its highest-ever level following the United States central bank’s recent interest rate cut, while Bitcoin rallied to a month-high, crossing the $64,000 mark.

According to GoldPrice.org, gold reached a record-breaking $2,629 per ounce on Sept. 23. The precious metal has seen a significant 5% growth over the past two weeks, bolstered by a Federal Reserve rate cut of 0.5% on Sept. 18.

This move made assets tied to Fed-set interest rates, such as government bonds, less appealing. Meanwhile, inflation hedges like gold became a go-to diversification option for investors.

Beyond Fed policies, the ongoing geopolitical tensions involving Russia, Ukraine, Israel, and Hamas, combined with the looming U.S. presidential election in November, have further fueled the demand for gold. Additionally, a Goldman Sachs report from Sept. 12 highlights that global central bank purchases of gold have tripled since Russia’s invasion of Ukraine in 2022.

Wall Street researchers now predict that gold could hit $2,700 by early 2025, with further Fed rate cuts expected. However, some analysts, like Peter Boockvar, Chief Investment Officer at Bleakley Financial Group, point out that gold has not yet surpassed its inflation-adjusted peak of $3,200 from 1980.

While gold continues its ascent, Bitcoin (BTC)—often referred to as “digital gold”—is also on the rise. Following the Fed’s decision, BTC experienced an 8.5% increase, peaking at $64,660 on Sept. 23, according to CoinGecko.

Crypto analysts, such as Markus Thielen of 10x Research, are predicting a new Bitcoin all-time high by the end of 2024. “We are nearing the pivotal October-to-March window, and a major breakout is increasingly likely,” Thielen noted in a Sept. 22 investor note.

Despite the enthusiasm surrounding Bitcoin, gold advocate Peter Schiff remains skeptical. In a post on X (formerly Twitter), Schiff remarked, “Gold has hit another record high, but investors remain distracted by Bitcoin. They’re missing out on the significance of gold’s rise.”

Will both Bitcoin and gold continue their upward trajectory in the coming months?

Leave A Reply

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

LEGO Removes Cryptocurrency Scam After Homepage Hack Incident

Toy giant LEGO has swiftly addressed and removed a...

Bitcoin Eyes $70,000 as Institutional Investors Pave the Way for Recovery

Bitcoin’s Road to $70,000: Institutional Investors Are the Key Bitcoin...

Skrill: A Secure, Cost-Effective Solution for Global Money Transfers

Skrill has become a global leader in digital payments...

Ripple Secures Major Approval in Dubai, Strengthens Position in UAE’s Crypto Ecosystem

Ripple Expands in the UAE with DFSA Approval The Dubai...