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Today’s top news:
Gold is soaring. Digital gold, not so much. Will that trend continue?
Gold prices climbed sharply on Wednesday, setting new ATHs and approaching $5,600 per ounce. It is now up over 27% on the year (28 days) and up ~100% on the year.
Several factors are driving the rally, including geopolitical tensions, a weaker U.S. dollar, and speculation that central banks including the Federal Reserve may shift toward more monetary easing. Meanwhile, stablecoin issuer Tether has aggressively expanded its physical gold holdings, now estimated at around 140 tonnes valued at roughly $23B, making it one of the largest non-sovereign gold holders in the world. CEO Paolo Ardoino has said Tether plans to continue adding to its gold reserves as part of a diversification strategy and to bolster backing for USDT and its gold-linked token XAUt.
“We are soon becoming basically one of the biggest, let’s say, gold central banks in the world," said Paolo Ardoino, Tether CEO.
This gold surge is likely a combination of flight to safety amidst geopolitical tension, reactions to a weakening dollar and a result of China plowing capital into it vs any other asset. But the scale of this move is unprecedented.
To frame the scale: Gold’s 5%+ move on Wednesday effectively added the entire market cap of Bitcoin in a single day. We’re so early. But the multi-trillion dollar question is now—what could trigger rotation between gold and Bitcoin? A few scenarios: It’s hard to predict if and when that rotation will happen. But if it does, the impact to Bitcoin will likely be swift and violent.
A few headlines that stood out:
- Fidelity to Enter Stablecoin Market With Ethereum-Based 'Digital Dollar'
This article has been published in decrypt.co via Yahoo News
Today’s top news:
Gold Surges Toward $5,600 Per Ounce
Gold is soaring. Digital gold, not so much. Will that trend continue?
What Happened
Gold prices climbed sharply on Wednesday, setting new ATHs and approaching $5,600 per ounce. It is now up over 27% on the year (28 days) and up ~100% on the year.
Several factors are driving the rally, including geopolitical tensions, a weaker U.S. dollar, and speculation that central banks including the Federal Reserve may shift toward more monetary easing. Meanwhile, stablecoin issuer Tether has aggressively expanded its physical gold holdings, now estimated at around 140 tonnes valued at roughly $23B, making it one of the largest non-sovereign gold holders in the world. CEO Paolo Ardoino has said Tether plans to continue adding to its gold reserves as part of a diversification strategy and to bolster backing for USDT and its gold-linked token XAUt.
What They’re Saying
“We are soon becoming basically one of the biggest, let’s say, gold central banks in the world," said Paolo Ardoino, Tether CEO.
Why It Matters
This gold surge is likely a combination of flight to safety amidst geopolitical tension, reactions to a weakening dollar and a result of China plowing capital into it vs any other asset. But the scale of this move is unprecedented.
To frame the scale: Gold’s 5%+ move on Wednesday effectively added the entire market cap of Bitcoin in a single day. We’re so early. But the multi-trillion dollar question is now—what could trigger rotation between gold and Bitcoin? A few scenarios: It’s hard to predict if and when that rotation will happen. But if it does, the impact to Bitcoin will likely be swift and violent.
Macro Crypto and Markets
A few headlines that stood out:
- Fidelity to Enter Stablecoin Market With Ethereum-Based 'Digital Dollar'
This article has been published in decrypt.co via Yahoo News
