Main takeout:
The price of gold rose 3% between May 29 and June 2, reaching the highest level for three weeks, and BTC (Bitcoin) has more than $ 105,000.
The dollar weak dollar strengthens investors elsewhere.
This short -term performance may seem negative at first glance, but some macroeconomic indicators suggest that Bitcoin can escape faster than expected.
The US dollar index (DXY) has fallen to the lowest level in six weeks, and investors are reducing exposure to US currencies. In general, this trend reflects that there is a growing concern about the reduction of trust in the federal monetary policy and/or the sustainability of US government liabilities.
US Treasury Secretary Scott Bessent added to CBS on May 1 that “we are in warning tracking.”
This remarks came after the JPMORGAN Chase CEO Jamie Dimon CEO filed an alarm in accordance with the House of Representatives, which suggested an increase of $ 4 trillion in the debt limit.
The weak DXY index encourages the holder of $ 31.2 trillion in the federal debt of the Americas to pursue profits elsewhere. Fixed income investment offers predictable profits, but the value of the US dollar is volatile. If foreign currency -based investments provide better returns, capital will be far from the dollar.
The United States has incentives to diversify gold reserves.
Despite the appeal of GOLD, there are several factors that can limit the demand for investors. The US government is the largest holder of precious metals, and the Treasury can sell some of the reserves to strengthen its fiscal status. If you repurchase some debt, especially long -term bonds, the US dollar will increase.
Even if the United States sells 17% of the gold reserves of $ 17.18 billion at the current price, it will still lead the global rankings with a wide range of margins of more than 100%. However, it is quite inefficient because the amount is applied only in about three weeks of the federal deficit.
relevant: The blockchain group adds $ 6.8 million to Bitcoin to the Treasury.
In contrast, $ 170 billion in investments in Bitcoin will firmly establish the US’s dominance on assets and will easily surpass China’s 190,000 BTC. More importantly, this scenario is already plausible after signing Donald Trump’s strategic Bitcoin preliminary order in March 2025.
The United States has the world’s largest gold reserves, but is not one of the fourth largest producers. The data of the World Gold Council ranks major gold in China, Russia, Australia and Canada into a production country. As a result, the United States has little incentives to promote gold prices, especially while increasing trade disputes and designated tensions.
ETF flow is less confident in GOLD’s rise.
In addition, despite the recent price hikes, the data shows the net leak of gold exchange transaction funds (ETFs). SPOT BITCOIN ETF, on the other hand, has been $ 3 billion in net inflow since May 15. This does not mean that gold investors are switching to cryptocurrencies, but they do not mean that they are lacking in confidence in the short -term rise of gold.
GOLD grows into an asset class of $ 22.7 trillion and is not attractive compared to stocks and alternative investments. In contrast, Bitcoin’s $ 2.1 trillion market capitalization suggests an important space of growth.
Bitcoin is more concerned about the rise of gold, rather than a direct competitor.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.