Bitcoin News Today: Gold's Record Climb Sparks Debate: Bitcoin's Long-Term Edge?

Gold reached an unprecedented high of $3,600 an ounce on Friday, as the market increasingly anticipates a Federal Reserve rate cut later in the month. The surge was driven by a recent US jobs report that revealed a slowdown in hiring and a rise in unemployment to its highest level since 2021, reinforcing expectations of a weakening labor market. Traders now give the Fed an 84% probability of implementing a 25-basis-point cut and a 16% chance of a 50-basis-point cut at its meeting on Sept. 17. Spot gold prices soared to $3,597.80 per ounce, surpassing its prior peak of $3,670 and marking a 4% weekly gain [3].

Bitcoin critic Peter Schiff has used the milestone as a platform to argue that investors have "picked the wrong horse" by favoring Bitcoin over gold. He highlighted that while gold has surged to new heights, Bitcoin remains approximately 15% lower compared to gold than its 2021 peak. Schiff’s comments reflect a broader debate among market analysts regarding the relative strengths of the two assets. Meanwhile, Bitcoin proponents have countered, suggesting that gold may dominate the short-term but that Bitcoin will ultimately prevail in the long term. Some even predict Bitcoin could reach $1 million before gold hits $5,000 [2].

Macro analyst George Gammon provided a different perspective, forecasting gold to rise to $4,500 within a year. This projection, however, depends on macroeconomic scenarios, including central bank demand, which has become a more significant factor than retail investor activity. Gammon outlined three potential outcomes: a severe liquidity crisis pushing gold to $4,000, a standard recession leading it to $4,500, and a best-case scenario with no recession also reaching $4,500. He emphasized that the current bull market for gold is still in its early stages, supported by institutional flows rather than retail demand [2].

Adding to the narrative, Tether, the world’s largest stablecoin provider, has shown a growing interest in gold. The company has reportedly engaged in discussions with multiple entities across the gold supply chain, from mining and refining to trading and royalty companies. Tether’s CEO, Paolo Ardoino, has expressed a strong affinity for gold, referring to it as “natural bitcoin” and arguing that it offers a safer alternative to sovereign currencies. The firm already holds $8.7 billion in gold bars, which it uses as collateral for its stablecoin. In June, Tether Investments acquired a minority stake in Toronto-listed Elemental Altus, a gold royalty company, for $105 million. This move aligns with broader industry efforts to bridge the gap between traditional assets and digital currencies [1].

The growing interplay between digital and physical assets has not gone unnoticed. Companies like Blue Gold, a Nasdaq-listed entity with a contested mining license in Ghana, are exploring the launch of gold-backed tokens to enhance the utility and acceptance of physical gold in digital ecosystems. Such initiatives reflect a broader trend of innovation in the intersection of cryptocurrency and traditional commodities, although Tether’s approach has been met with skepticism by some industry insiders, who question its long-term viability and strategic coherence [1].

Source:

[1] Stablecoin group Tether holds talks to invest in gold miners (https://www.ft.com/content/135fb3dd-2395-4f04-8cc6-7fb0e87cd092)

[2] Peter Schiff Takes A Victory Lap As Gold Hit New All-Time ... (https://www.benzinga.com/crypto/cryptocurrency/25/09/47530219/peter-schiff-takes-a-victory-lap-as-gold-hit-new-all-time-high-at-3600-bitcoin-is-the-wrong-horse)

[3] Gold price jumps to new high on US jobs report (https://www.mining.com/gold-price-makes-new-high-with-3600-in-touching-distance/)