Bitcoin and Gold have surged to all-time highs once again.
NewsOnline Nigeria reports that Bitcoin and the yellow metal rallied to a record high once again on Monday’s trading session in volatile trading, as crypto mania and the appetite for the precious metal continued to sweep through the global financial space.
This Nigeria news platform understands that the value of Bitcoin and the altcoin market surged this past weekend, with some reaching new all-time highs and others reaching their highest point in years—all while Bitcoin momentarily made a comeback to the $70,000 threshold.
With the US dollar under pressure and US Treasury bond yields declining, gold surged higher this week, setting a record above $2,187 per ounce. The pair is still technically overbought ahead of the world’s largest economy’s important inflation data the following week.
The market is receiving additional support from an outlook that includes an upgrade to the Ethereum blockchain platform, which is home to the second-largest cryptocurrency, ether, and a Bitcoin “halving” event in April, which slows the flow of Bitcoin minting. Billions of dollars have poured into ETFs in the last few weeks.
The U.S. has approved eleven spot Bitcoin ETFs, a watershed moment for the industry marked by the Securities and Exchange Commission in late January, which came after an 18-month crypto winter marked by several high-profile corporate bankruptcies and scandals.
Even institutional investors, who avoided cryptocurrencies in the past because of their volatile and abrupt movements, are now making long-term investments, which experts believe may support this latest surge. Net flows to the top ten U.S. in the week ending March 1, spot Bitcoin funds totaled $2.2 billion, with over $2 billion invested in BlackRock’s iShares Bitcoin Trust (IBIT).
Bill Ackman, a popular hedge fund manager, shifted his focus to Bitcoin and offered a scenario in which the price of the largest cryptocurrency in the world may rise much higher than anyone could have predicted.
Ackman wrote on X, “A rise in Bitcoin prices causes more people to mine the cryptocurrency and use more energy, which raises energy costs, drives up inflation and the dollar, drives demand for Bitcoin and more mining, drives energy demand and the cycle continues.”
In the precious metal market, Monday saw a slight increase in spot gold prices to $2,180 per ounce, following last Thursday’s settlement at the highest level since 1979. Conversely, spot silver prices saw a recent increase of 0.2%.
After rising more than 5% last week, the contract settled at its highest level since late December on Thursday.
Prices for precious metals have increased recently due to rising expectations of United States reductions in interest rates.
Jerome Powell, the chair of the Federal Reserve, stated on Thursday that the inflation rate is “not far” from the level at which rate reductions by the central bank are necessary.
Generally regarded as a “haven” asset during uncertain financial times, gold has rebounded despite high interest rates and a comparatively strong U.S. dollar.
