For the first time since the emergence of Bitcoin (BTC), both Bitcoin and gold simultaneously set new record highs. On March 5, Bitcoin recorded a new high, surpassing $69,200 for the first time in history, a moment that coincided with significant developments in traditional financial markets, as gold also reached its peak on the same day. According to TradingView data, spot gold hit a record of $2,130 on March 5 at 1:30 PM UTC, surpassing its previous high of around $2,000 recorded in early December.
Within less than two hours, Bitcoin also set a historic record, reaching $69,210 at 3:00 PM UTC, marking the first time Bitcoin and gold simultaneously broke new records since Bitcoin’s inception in 2009. This was seen as another bad day for fiat currency by the community, as both gold and Bitcoin are often considered potential hedges against fiat currencies and inflation. Analysts believe that the peaks for both gold and Bitcoin are driven by the prospect of future interest rate decreases to manage government debt loads. Matthew Miller, Global Head of Research at StoneX, stated that the simultaneous price highs occur against the backdrop of relatively high interest rates, or 4.5% plus, across the developed world.
Miller pointed out that reasons ranging from high risk appetite to steady inflation and record debt levels, to ongoing geopolitical tensions in the Middle East and Eastern Europe, are driving traders to seek alternatives to traditional fiat currencies in the current conditions. For Bitcoin, continuous growth is largely due to excitement about the upcoming four-yearly halving event and massive inflows into U.S. spot Bitcoin ETFs. Amid these historic highs, some prominent Bitcoin bulls have expressed more confidence in Bitcoin over gold. Billionaire Shark Tank star Mark Cuban, in an interview with CNBC on March 5, stated, “I’ll take Bitcoin over gold all day, every day.”
Peter Schiff, a prominent gold bull, countered Cuban’s remarks, arguing in a post that “the Shark is swimming in the wrong tank.” According to CoinGecko data, at the time of writing, Bitcoin has increased by 52% year-to-date, while the spot price of gold has risen by about 2% since the beginning of January.
