Despite the fact that this year was filled with global uncertainty, Bitcoin has emerged as a clear winner soaring to a high not seen since the bull run of 2017. Bitcoin is all rage once again, thanks to several highly influential investors who bought a huge number of coins.
This time, it is Raoul Pal, the prominent Bitcoin bull and a former Goldman Sachs hedge-fund manager who revealed pouring a huge chunk into crypto.
Bitcoin’s buyer demand has intensified of late. Interestingly, During the same time, the gold market witnessed significantly large outflows propelling several long-term investors to add more capital to Bitcoin and shorting the metal.
Pal said that his liquid net worth is nearly fully invested in crypto. Furthermore, the consistent uptrend of Bitcoin and the struggling case of Gold led him to announce that he was all set to reduce his entire gold holdings for Bitcoin and Ethereum. The exec’s tweet read:
A little over a month ago, the Founder of the investment strategy research service Global Macro Investor [GMI] had revealed allocating 50% of his personal investment portfolio in Bitcoin during a recent interview.
He had previously stated that Bitcoin was eating the world and that the cryptocurrency has become a “supermassive black hole” that is sucking in everything around it and destroying it, while further asserting that this narrative was only going to increase over the next 18 months.
Bitcoin Vs Gold
At $18,578, Bitcoin has never been closer to its all-time high. The same cannot be said for Gold. The price of the precious yellow metal is far from its peak. Despite the massive bullish sentiment over Bitcoin, it is important to note that the cryptocurrency is not a replacement for Gold just yet.
As mentioned above, Gold prices taking a hit coincided with surging Bitcoin’s price in the first week of November. If this theory is to be taken into account, it would mean that outflow of capital from Gold and an inflow in Bitcoin was witnessed. The movement of money from Gold to Bitcoin further validate the narrative that the latter is a speculative bet rather than a “safe-haven” asset.