Bitcoin Struggles Despite Golds Rise as a Preferred Asset in Cryptocurrency Trading
Recently, gold has emerged as a leading asset in de-cryptocurrency trading, while Bitcoin, often referred to as digital gold, has shown relatively poor performance. Analysts suggest that a shift in market perception towards Bitcoin could restore its correlation with gold.
Hong Sung-wook, a researcher at NH Investment & Securities, noted, "While there is a growing perception that Bitcoin has investment appeal similar to gold, many still view it as a speculative asset and do not trust it. This has led to frequent instances where the correlation with gold is low."
However, he pointed out, "Until the Chuseok holiday, Bitcoin recorded new highs due to benefits from de-cryptocurrency trading and is indeed a representative correlated asset alongside gold. Although this years performance may be disappointing, when considering the potential for increases in 2023 and 2024, it shows absolutely excellent performance."
According to him, Bitcoin has historically outperformed gold in the short term whenever institutional factors, such as the launch of a spot exchange-traded fund (ETF), the election of Trump, or the passing of the GENIUS Act, have emerged.
The next catalyst expected to boost Bitcoins price is the Clarity Bill for virtual asset structuring. Hong explained, "This legislation aims to establish a framework for the overall virtual asset market and is conceptually similar to Europes MiCA legislation and Koreas basic law on digital assets."
He also mentioned, "Although the Bill has been delayed due to shutdowns and differences in opinion between the two parties, it has a chance of passing as early as this year or early next year. During the House vote in July, the Clarity Bill received bipartisan support, with a vote of 294 to 134..."
Hong Sung-wook, a researcher at NH Investment & Securities, noted, "While there is a growing perception that Bitcoin has investment appeal similar to gold, many still view it as a speculative asset and do not trust it. This has led to frequent instances where the correlation with gold is low."
However, he pointed out, "Until the Chuseok holiday, Bitcoin recorded new highs due to benefits from de-cryptocurrency trading and is indeed a representative correlated asset alongside gold. Although this years performance may be disappointing, when considering the potential for increases in 2023 and 2024, it shows absolutely excellent performance."
According to him, Bitcoin has historically outperformed gold in the short term whenever institutional factors, such as the launch of a spot exchange-traded fund (ETF), the election of Trump, or the passing of the GENIUS Act, have emerged.
The next catalyst expected to boost Bitcoins price is the Clarity Bill for virtual asset structuring. Hong explained, "This legislation aims to establish a framework for the overall virtual asset market and is conceptually similar to Europes MiCA legislation and Koreas basic law on digital assets."
He also mentioned, "Although the Bill has been delayed due to shutdowns and differences in opinion between the two parties, it has a chance of passing as early as this year or early next year. During the House vote in July, the Clarity Bill received bipartisan support, with a vote of 294 to 134..."
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