However, the shift is not necessarily bearish for Gold as the precious metal is still valuable as explained below.
Gold will always have a place in jewelry and coin collections, but most indicators point to an accelerating pace of Bitcoin replacing the metal as a store of value in investor portfolios. Bitcoin’s fundamental and technical underpinnings are improving while gold’s deteriorate.
Bitcoin Leaving Exchanges is a Sign of Increased Demand
2020 and this is year is particularly important for Bitcoin as its reducing volatility and ETF flows indicate that its price is in the early days of appreciating against Gold.
Furthermore, the demand for Bitcoin as a store of value is best exemplified by the amount of BTC leaving exchanges. The amount currently available for trading is low on exchanges and hints of further price appreciation.
The world’s largest automaker by market cap – Tesla – allocating some of its wealth to Bitcoin may indicate an inflection point favoring the crypto. Rising equity riches partially diversifying into Bitcoin is logical, in our view.