Bitcoin and the broader crypto market continue to see wild price swings, making cryptos an unfavorable choice for investors. The total cryptocurrency market currently stands at $900B, a far cry from its ATH of $2.3T in November 2021. Bitcoin is trading at $20,600, 70% down from its ATH of $69,044.
On the other hand, gold has managed to sidestep steep selloffs and seems to be rising as the preferred store of value during the current times of extreme uncertainty.
Economists at Deutsche Bank expect gold to maintain its safe-haven appeal and forecast prices to reach $2,100/oz in June 2023.
According to Deutsche Bank, “Gold’s hedging characteristics may also come to the fore. With market volatility likely to continue to be driven by concerns regarding inflation, recession and/or geopolitics, we feel gold should be well supported by investor demand.”
Notably, gold has also outperformed Bitcoin by a wide margin year-to-date. While the leading cryptocurrency is down by more than 55% YTD, gold is up by more than 0.60%.
