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Matrixport: Two major macro trends will continue to boost investment in Bitcoin and gold
2024-10-25 09:11:58
Odaily News Matrixport released a weekly report, and the continued demand for Bitcoin and gold is driven by two major macro trends: the efforts of central banks to get rid of their dependence on the US dollar and the rapid rise in sovereign debt levels. These forces are expected to drive the continued growth of both assets in the long term. Investors should consider holding both assets because they have performed well this year and may continue to benefit from the above macroeconomic changes. In 2024, gold rose 31%, while Bitcoin soared 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 dependence on the US dollar. In addition, Bitcoin's unique position as a speculative asset and a means of storing value is gaining recognition. With increasing institutional interest, such as the approval of Bitcoin spot ETFs and large investments from companies such as MicroStrategy, Bitcoin is becoming a more integral part of the financial ecosystem. Central banks have indirectly acknowledged the importance of Bitcoin by investing in proxy companies such as MicroStrategy. Concerns about global economic instability, soaring government debt levels, and the potential for rising inflation have also driven demand for gold and Bitcoin. As governments may need to print more money to pay down their debts, these two assets offer protection against currency debasement. Investors who have included Bitcoin and gold in their portfolios have seen strong returns this year and are poised to benefit from these long-term trends. Looking ahead, the growing trend of tokenized assets pegged to the price of gold opens up a new avenue for investors, providing an on-chain alternative to traditional gold investments. This innovation is expected to further drive demand for gold and Bitcoin during times of economic uncertainty.