Bitcoin to Serve as Haven during Tough Times, Gold Fights off Rising Rates
According to Bloomberg News, the prices have risen to the highest since the beginning of June since tensions between Russia and the West over Ukraine have escalated, coupled with a spike in inflation in the United States, which is being recorded as the strongest in 10 years. Simultaneously, the real interest rate, which is a crucial driver of gold, has surged this year, countering the inverse correlation between the two. And when a comparison is drawn between different assets on whether Bitcoin is a better option for storing value, the digital currency or the cryptocurrency is falling behind, to say, at least for the time being. Before the demand for haven over Ukraine took over, to some observers, the resilience of bullion had been a mystery, especially when it came to the tightening cycle of the Federal Reserve. One of the main concerns was that the central bank in the United States could trigger a recession if it increases rates quite frequently and to a level that is higher than what is required to tame inflation.
Gold wins over Bitcoin