Bitcoin vs. Gold – Where is it better to invest your money?

Bitcoin vs. Gold: Which Investment Wins in Times of Uncertainty?

The upcoming US elections on November 5, 2024 and the resulting market volatility could drive investments in Bitcoin and gold. Historically, political uncertainty pushes investors toward safe havens like gold because of its proven stability. If the election results are unclear, market fears could weaken the US dollar, making gold an attractive option. Geopolitical tensions in the Middle East and rising oil prices are putting additional pressure on global markets. These tensions increase the attractiveness of gold as a store of value in uncertain times.

On the other hand, Bitcoin offers high growth potential for those willing to take more risk. The value of gold can rise steadily in times of crisis. Bitcoin’s performance, on the other hand, is determined by trends in digital asset adoption and changes in monetary policy. Despite the recent strength of the US dollar, Bitcoin’s fixed supply and decentralized nature make it attractive in times of monetary uncertainty. However, Bitcoin remains very volatile and sensitive to macroeconomic changes. For long-term stability, gold may be a better option, while Bitcoin offers potential upside for risk-tolerant investors.

From a technical perspective, the Bitcoin/Gold ratio shows that Bitcoin is currently more valuable than gold. However, the increased price ranges reflect the strong volatility in the Bitcoin market. The ratio has consolidated within a triangle formation with a key level of 34. Previously, a break of the triangle at level 8 triggered a strong Bitcoin rally after a period of consolidation. While Bitcoin rose sharply, gold remained in the consolidation phase and prepared for its next move. If the ratio rises above 34, Bitcoin is likely to begin its next increase with strong upside potential.