October 2, 2022

Overheard On CNBC: If It Wasn’t For Bitcoin, Gold Would Be $3K

2 min read

Bitcoin is making headlines left and right on media outlets all over, but none more so than CNBC. According to a well appreciated journalist, during a sector on CNBC it was said that gold would be trading at $3,000 an ounce if it wasn’t for Bitcoin.

Here’s why that declaration is most likely true, and why the cryptocurrency will continue to take market share away from the aging glossy rock.

Gold Would Trade At $3K If It Wasn’t For BTC

The digital story worked like an appeal, and Bitcoin is now stealing any capital looking to park somewhere resistant to inflation.

Gold has typically served that purpose, and as the economy first started treading on thin ice, the ages old asset that was as soon as the “& ldquo; standard & rdquo; began to uptrend again.

Associated Reading|Seller’s Remorse: Day Trader Dave Portnoy Swears Off Bitcoin

Gold eventually reached more than $2,000 an ounce at the height of its booming market. Natural profit-taking caused the cost per ounce to draw back, but rather than choose another leg higher, capital well suited for gold made its way into Bitcoin instead.

Due to the fact that Bitcoin exists, and money is pouring into the scarce cryptocurrency instead of gold, has prevented gold from trading at $3,000 an ounce, according to a declaration overheard on CNBC today.

The statement was shared in a tweet, fingering the blame on Bitcoin as the culprit for gold’s lack of cost appreciation.

How Bitcoin Makes Metals Seem a Lot Less Precious

Charts don’t lie, fortunately, and comparing gold against Bitcoin absolutely reveals a connection in between when gold peaked and the cryptocurrency actually took off.

The change happened just days after gold had topped, and openly traded companies started purchasing BTC to contribute to company reserves.

bitcoin btc xau

 Gold's value has been decreasing while Bitcoin's rises. Coincidence?|Source: BTCUSD on TradingView.com

That pattern has actually now extended into the similarity Tesla, and more corporations are expected to do the same and could be responsible for Bitcoin’s rate appreciation.

Other factors, however, are undeniably due to gold outflows from hedge funds and other investors. Even retail are now getting back into crypto, however are focused more on altcoins as the cost per BTC becomes out of reach for the average individual.

Related Reading|Chart Comparison Demonstrates Effectiveness Of Bitcoin Digital Gold Narrative

But even altcoins taking in some of the capital that might have made its method into gold, is eventually Bitcoin’s doing. It is since of the first ever cryptocurrency that the remainder of the market exists, and according the declaration made on CNBC, is responsible for gold trading at under $2,000, let alone the $3,000 it would be otherwise.

Featured image from Deposit Photos, Charts from TradingView.com