The continued demand for BTC and gold is driven by two major macro trends, the efforts of central banks to break away from their dependence on the US dollar, and the rapid rise in sovereign debt levels. These forces are expected to drive continued growth in both assets over the long term. Investors may consider holding both assets as they have performed well this year and may continue to benefit from the above-mentioned macroeconomic changes.

Central bank purchasing power for gold continues to push up the value of gold

In 2024, gold is up 31% while BTC has surged 59%, outperforming traditional assets such as bond ETFs and the S&P 500 (+22%). Retail demand for gold has expanded, with Costco selling $200 million worth of gold per month, especially as central banks in emerging markets continue to buy gold to hedge their reliance on the dollar. This trend is particularly evident in countries such as China, which are seeking to reduce their reliance on the dollar.

BTC’s unique position as a speculative asset and store of value is gaining recognition

With increasing institutional interest, such as the approval of BTC spot ETFs and large investments from companies such as MicroStrategy, BTC is becoming a more integral part of the financial ecosystem. Central banks have indirectly acknowledged the importance of BTC by investing in proxy companies such as MicroStrategy.

Gold and BTC's anti-depreciation properties continue to increase in demand in the current context

Concerns about global economic instability, soaring government debt levels, and the potential for rising inflation have also driven demand for gold and BTC. As governments may need to print more money to repay debts, these two assets provide protection against currency depreciation. Investors who include BTC and gold in their portfolios have received strong returns this year and are expected to benefit from these long-term trends.

Tokenized assets such as gold tokens offer an on-chain alternative to traditional gold investments

The growing trend of tokenized assets pegged to the price of gold has opened up a new avenue for investors, providing an on-chain alternative to traditional gold investments. For example, Matrixdock recently launched the gold token XAUm, which strictly follows the principle of "1 XAUm = 1 troy ounce (toz) of gold", allowing users to easily verify the product's logic and the corresponding amount of physical gold. This innovation is expected to further drive demand for gold and BTC during times of economic uncertainty.

Some of the above views come from Matrix on Target. Contact us to obtain the full report of Matrix on Target.

Disclaimer: The market is risky and investment should be cautious. This article does not constitute investment advice. Digital asset trading can be extremely risky and unstable. Investment decisions should be made after carefully considering personal circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.