The Capital
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The Capital

Relieving the Old Guard? SoV Investors prefer Bitcoin over Gold

The bitcoin bull run is quickly turning into a marathon as money piles into the pioneer cryptocurrency — so much so that even Bloomberg Intelligence recognised its growing popularity over gold.

Let’s dig in.

Bloomberg Intelligence: Institutions Prefer Bitcoin to Gold ETFs

There’s a sharp uptick in the number of investors choosing bitcoin over gold, according to new data from Bloomberg Intelligence.

Bloomberg’s Mike McGlone, a senior commodity strategist, pointed to convincing figures showing an accelerated influx into bitcoin in recent months.

Speaking about the changing dynamic in terms of a ‘changing of the guard,’ McGlone said in a tweet that ‘store of value’ investors are opting for bitcoin over gold.

Digital #Gold Pushing Aside the Old Guard -
Gold will always have a place in jewellery and coin collections, but most indicators point to an accelerating pace of
#Bitcoin replacing the metal as a store of value in investor portfolios.

— Mike McGlone (@mikemcglone11) March 8, 2021

In an age where every aspect of our lives has gone digital, is it any wonder that bitcoin is challenging gold’s cumbersome status as the world’s top ‘store of value’?

Check out the full story here!

Technically speaking

Bitcoin is in a parabolic run-up and continues to show strength.

In February, that strength came into question as selling pressure saw a sharp wipe from $58,366 to $43,081 — a 26% sell-off from peak to trough.

However, the sell-off was front-run by eager buyers, who stepped in before the January peak could get tapped, just 2% above the mark. At that point, bitcoin rebounded and took the entire crypto market with it.

Assuming parabolic continuation after a clean bullish retest (only obvious in hindsight), then the next potential target could be the 1.618/2 fib-extension level, i.e., a price tag between $67,813 and $73,652 — representing an 8% spread.

In the event that bitcoin surpasses all expectations, then the 2.618 level at $83,707 could be the next pit stop, and we’ll be watching this closely in our open telegram channel.

Bearing in mind that bitcoin is likely to be in the second half of this trend, it’s not unreasonable to expect bigger price swings as new money with potentially shorter time horizons piles into bitcoin.

  • Weekly close above $60,000 signals bullish continuation in March
  • Close below $50,000 indicates a potential move to the 20-weekly EMA

As you’re aware, the ETH/BTC pair was in a down-trend throughout the (BTC/USD) corrective period in February. But, now that bitcoin is potentially shooting towards higher targets, this could mean that ETH outperforms BTC in Dollar terms again.

The setup is quite simple: ETH/BTC needs to reclaim the pivotal ₿0.036 level on lower time frames first, after which it can attempt a move above ₿0.04 again.

This would bring forward a strong case for multi-week outperformance relative to bitcoin (in USD terms).

Aside from the technical aspect, fundamental tailwinds offer strong impetus for Ethereum going forward. Ethereum Improvement Proposal (EIP) 1559 is scheduled to go live this July, which will change the fee structure ( and solving scalability).

Briefly, the fees will be set by the network (and burned) instead of being set by miners. If markets are forward-looking then one could expect this significant upgrade to be priced in before launch date.

Catch you next time.

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Read More: BTC balance on exchanges prints new low as Market Cap hits 1 TN

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Best regards,
Christopher Attard
Founder of Chris on Crypto
Contributor to
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Chris on Crypto

Journalist-turned crypto-writer & analyst; forging the narrative, stacking sats.