Update on Gold & Bitcoin

The Tradier Rundown covered Bitcoin and gold in February 2024.

On February 29, Bitcoin’s most recent high was $57,327.06 on February 27 when we wrote, “The recent price action suggests Bitcoin’s price is on an express train to challenge the late 2021 high and could explode to the $100,000 level per token or higher before the latest rally runs out of upside steam.” On February 8, gold was trading at around the $2,050 per ounce level when we said, “Gold has rallied over the past quarter of a century, making higher lows and higher highs in a bullish trend that continues in early 2024.”

In both February editions of the Tradier Rundown we highlighted ETFs and related products that would track the performance of the leading cryptocurrency and precious metal. In March 2024, gold and Bitcoin reached new record highs as the bull markets remained firmly intact.

Bitcoin and gold- The newest and the oldest means of exchange

• Bitcoin burst on the scene in 2010, making it the world’s newest currency alternative.
• Gold has been around for thousands of years, predating all other means of exchange.
• Bitcoin and gold have rallied to new highs in dollars and all other fiat currencies.

New highs in March 2024

• Bitcoin rose to a $73,662.76 record high on March 14, 2024.
• April COMEX gold futures reached $2,203.00 per ounce on March 8, 2024.
• While gold’s bull market began in 1999, Bitcoin has experienced boom-and-bust price action since 2010.

Trading patterns suggest caution

• Over the past two and one-half decades, a correction followed each new high in gold prices.
• Bitcoin has experienced price explosions and implosions since 2010.
• The risk of corrections is high as gold and Bitcoin have reached new peaks.

The most liquid Bitcoin and gold ETF products

• Two highly liquid spot Bitcoin ETF products are GBTC, with over $26.3 billion in assets, and IBIT, with over $790 million in assets under management.
• Two highly liquid gold ETF products that hold physical bullion are GLD, with nearly $58 billion in assets, and IAU, with almost $27 billion in assets under management.
• These ETF products have added liquidity to gold and Bitcoin as they increase the addressable market, allowing investors and traders exposure in standard equity accounts.

The trend is your friend until it bends

• Trends reflect if buying or selling is dominant.
• The trends in all markets are the most significant sentiment indicators.
• In mid-March 2024, Bitcoin and gold remain in bullish trends, but the risk of corrections has increased with the prices.

Bitcoin and gold’s rise to new record peaks reflects the declining faith in fiat currencies. While Bitcoin is the newest and gold the oldest means of exchange, they both have limited supplies that governments cannot inflate. The leading crypto and precious metal could be telling us that government spending, debt, and money printing have reached an unsustainable level.

Thanks for reading, and stay tuned for the next edition of the Tradier Rundown!