According to BlockBeats, on October 25, Matrixport released its latest weekly report highlighting the sustained demand for Bitcoin and gold, driven by two major macroeconomic trends: efforts by central banks to reduce reliance on the US dollar and the rapid increase in sovereign debt levels. These forces are expected to support the long-term growth of both assets. Investors are advised to consider holding these assets as they have performed well this year and may continue to benefit from these macroeconomic changes. In 2024, gold has risen by 31%, while Bitcoin has surged by 59%, outperforming traditional assets such as bond ETFs and the S&P 500 index (+22%). Retail demand for gold has expanded, with Costco selling $200 million worth of gold monthly, and central banks in emerging markets continue to purchase gold to hedge against dollar dependence.
Additionally, Bitcoin's unique position as a speculative asset and store of value is gaining recognition. With increasing institutional interest, such as the approval of Bitcoin spot ETFs and significant investments by companies like MicroStrategy, Bitcoin is becoming an indispensable part of the financial ecosystem. Central banks indirectly acknowledge Bitcoin's importance by investing in proxy companies like MicroStrategy.
Concerns about global economic instability, soaring government debt levels, and potential inflation are also driving demand for gold and Bitcoin. As governments may need to print more money to repay debt, these assets offer protection against currency devaluation. Investors who included Bitcoin and gold in their portfolios this year have seen substantial returns and are likely to benefit from these long-term trends. Looking ahead, the growth trend of tokenized assets linked to gold prices provides a new avenue for investors, offering an on-chain alternative to traditional gold investments. This innovation is expected to further drive demand for gold and Bitcoin during periods of economic uncertainty.
