Both Gold AND Crypto Break All-Time Highs, Soaring Above Respective 2021 and 2023 Peaks

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Last Updated on: 11th March 2024, 08:59 pm

Following months of elevated demand, Bitcoin has finally smashed its price ceiling set in 2021, reaching a high of over $69,000 per token. On Tuesday morning, the world’s largest cryptocurrency by market cap peaked at $69,210 before retreating to $65,800 around noon. 

During Bitcoin’s most recent bear market—which hit a low of $16,000 during the FTX crisis in December 2022—some were speculating whether cryptocurrencies were in their final days. Today’s news proves that the crypto industry is here to stay, despite its persistent and periodic drawdowns. 

The year-to-date (YTD) gain for Bitcoin is currently +51.21%, a phenomenal return in little over two months. This dwarfs the YTD gains made by the S&P 500 (+7.25%), beating out the stock market more than seven times over. Over the past 12 months, Bitcoin is up a staggering +191.84%. 

Market Snapshot: March 5, 2024

• Inflation Rate: 3.1%
• Fed Rate: 5.25-5.5%
• Gold Price: $2,126/oz.
• Silver Price: $23.78/oz.
• Bitcoin Price: $65,503 per BTC
• Ethereum Price: $3,706 per ETH

Can Bitcoin’s breakneck pace be sustained? It seems unlikely that the market’s momentum, carried by the SEC approval of several major Bitcoin ETFs, can hold up in the long run. Nonetheless, Bitcoin’s price surge indicates that the asset is as resilient as many originally thought. For now, all eyes remain on Bitcoin ahead of April’s “halving” event, which is likely to spur significant price action across the entire crypto industry. 

Gold Rallies to New Heights

Meanwhile, gold futures eclipsed all-time highs. Front-month futures for gold hit $2,125 per troy ounce on Tuesday, following Monday’s historic close above $2,100. 

Gold’s recent bull run—up +10.30% over the past six months—has been driven by a variety of factors. The principal driver is that speculators are betting on interest rate cuts in the near term, with many analysts expecting the first cut to come as early as April. 

Historically, gold has tended to perform well in falling interest rate environments. Combined with geopolitical uncertainties in the Middle East, Eastern Europe, and the Red Sea, market conditions have created a perfect storm to drive demand for the yellow metal. 

It stands to reason that, if inflation continues to fall over the next couple of CPI reports, consumer and institutional demand for gold will rise in step. 

What to Watch in the Months Ahead

For now, all eyes are tuned to the Federal Reserve’s upcoming meeting on April 30, where the central bank’s restrictive monetary policy may finally start its reversal. 

Amid macro-level economic uncertainty, geopolitical tensions around the globe, and major upcoming inflection points for Bitcoin, we should expect high volatility ahead. However, conditions remain bullish for both gold and crypto assets as speculators seek the latter and investors seek a safe haven in the former. 

For alternative investors, there’s a lot to watch out for in the months ahead. Don’t get caught on the sidelines. To capitalize on the upside potential, speak with your financial advisor about diversifying your portfolio with positions in both precious metals and cryptocurrencies within a tax-advantaged alternative asset IRA today.