Increasing allocation of Bitcoin and gold in conservative investment strategies as defense against global uncertainty conditions.
In recent months, Bitcoin and gold have begun to be increasingly considered by investors as two forms of protection against global instability. The trend has been highlighted by analyst Noelle Acheson, who observed how the recent price increase of the two assets occurs despite the postponement of the decision on possible interest rate cuts by the United States Federal Reserve.
Rising gold price
The increase in the price of gold has occurred concurrently with a capital outflow from ETFs, suggesting that the interest in gold does not stem from retail investors. Among the factors contributing to the price growth is the increase in gold reserves of central banks in Turkey, China, India, and Kazakhstan, with a 39-ton increment in January 2024 compared to the previous month.
Bitcoin surpasses all-time high
Conversely, Bitcoin’s surge has been primarily driven by the amount of money flowing into the spot ETFs approved in January by the SEC.
However, the growing recognition as a diversification tool in long-term investment portfolios has also contributed to the recent price increase. For example, Fidelity Investments, the fourth-largest mutual fund and pension fund manager in the world, has recently added a percentage of allocation to Bitcoin in its investment funds.
