Gold Price: How Will it React to the Bitcoin Halving?

Joshua Ramos
Gold and Bitcoin
Source: Watcher.Guru

Throughout the year, both gold and bitcoin have emerged as two primary investment options for traders. Moreover, they have both thrived amid the uncertain macroeconomic factors present. Yet, with the digital asset market approaching, how will the gold price react to the impending Bitcoin Halving?

The Bitcoin Halving event is currently scheduled to take place on April 19th. Moreover, gold has continued to find solid ground, acting as a haven asset and sustaining its $2,330 level amid less-than-positive inflation data. However, the upcoming impact on BTC circulating supply could make it surpass gold as the premier investment option.

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Also Read: Gold Prices Move Towards Hitting $2,500 in April 2024

Could Gold Price Be Threatened by Upcoming Bitcoin Halving?

Throughout 2024, the investment sector has seen both gold and bitcoin emerge as clear winners. The former has reached a plethora of all-time highs dating back to its skyrocketing value in December. Alternatively, BTC reached an all-time mark of $73,000 last month following the approval of Spot Bitcoin ETFs in January.

However, the prevalence of both assets has begun to create inherent competition. Especially amid uncertain macroeconomic realities, investors are as focused as ever on creating optimistic investment scenarios. Subsequently, the market has seemingly begun to ponder what could be in store for the Gold price amid the impending Bitcoin halving event.

One of the individuals who has brought this conversation to the forefront has been Peter Brandt. The iconic trader took to X (formerly Twitter) to share his opinion on the battle of the assets. In that post, he clearly stated which side he aligned with and the trend that supported that position.

Also Read: Fidelity Spot Bitcoin ETF Now Holds Over $10 Billion Worth of BTC

“Some on X claim that Bitcoin is dead and gold is the new king?” Brandt stated. “Really? It is all a matter of time frame, but the one-year trend right now does not favor gold.” Additionally, Brandt noted that since Bitcoin’s inception, it had been leading the two assets.

Additionally, billionaire Steve Cohen recently discussed the two assets. After telling CNBC that he owns “a little bit” of Bitcoin, he discussed its place. Subsequently, he pondered with the television network that “maybe it’s the new gold.” That question has further sparked debate about the ongoing competition.

A Two-Horse Race With a Clear Leader?

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Also Read: BlackRock’s IBIT Nears $20 Billion In Assets As Bitcoin Nears ATH

Throughout the year, both assets have been confronting the growing competition. Specifically, both the metal and digital currencies have begun to surge in popularity due to economic uncertainty and the necessity for diversification.

However, Brandt does appear to have a point, Bitcoin has all the momentum and appears to be a better bet than gold at the moment. This year specifically has driven up the adoption of the asset.

Institutional investment has surged, and although gold has become a favorite for Central Bank acquisitions, it has lagged in the overall adoption and price increases that BTC has enjoyed.

This situation should only be magnified when the Bitcoin halving event approaches. The elimination of half of the entire circulating supply will only drive value even further. Therefore, the scarcity should allow it to edge ahead of Gold. Therefore, pushing the digital asset to the forefront of investment interest and solidifying its status as the most important haven asset.