Own Bitcoin, Own Gold: Two Megatrends Driving Both Assets | Matrixport Research

The ongoing demand for Bitcoin and gold is driven by two powerful macro trends: central banks diversifying away from the U.S. dollar and the rapid rise in sovereign debt levels. Investors would be wise to consider holding both assets, as they have proven to be strong performers this year and are likely to continue benefiting from these macroeconomic shifts.

In 2024, gold has risen by 31%, while Bitcoin has surged by 59%, outperforming traditional assets like bond ETFs and the S&P 500 (+22%). Retail demand for gold has expanded, with Costco selling $200 million worth of gold monthly, and central banks, especially in emerging markets, have continued to buy gold as a hedge against U.S. dollar dependence.

Additionally, Bitcoin’s unique position as both a speculative asset and a store of value is gaining traction. With increasing institutional interest, as seen with the approval of Bitcoin Spot ETFs and substantial investments from companies like MicroStrategy, Bitcoin is becoming a more integral part of the financial ecosystem. Central banks indirectly acknowledge Bitcoin’s growing importance by investing in proxies like MicroStrategy.

The rising demand for both gold and Bitcoin is also fueled by concerns over global economic stability, with soaring government debt levels and the potential for higher inflation. As governments may need to print more money to service their debt, both assets offer protection against currency devaluation. Investors who have combined Bitcoin and gold in their portfolios have been well-rewarded this year and are positioned to benefit from these long-term trends.

Looking ahead, the growing trend of tokenized assets linked to the price of gold offers a new avenue for investors, providing an on-chain alternative to traditional gold investments. This innovation is set to further drive demand for gold and Bitcoin, especially in times of economic uncertainty.

Disclaimer: The above content is for informational purposes and reference only. The content does not constitute investment advice. Digital asset transactions can be precarious and volatile. Investment decisions should be made after carefully considering individual circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.

Download Matrixport Official APP: https://invest.matrixport.com/downloadPage/en

Matrixport Official X：https://x.com/Matrixport_EN

Matrixport Official Community：https://t.me/Matrixport_EN