As Bitcoin slows in 2025, gold will rise to new heights. Bitcoin exploded in late 2024 after a Trump-fueled rise. Its $100k+ achievement this year is hardly surprising. Other assets followed Bitcoin’s 50% drop since November 3, with Dogecoin doubling.
Gold had a great year, while crypto assets had a great run in the end. Financial investors returned to the precious metal as a haven amid escalating geopolitical and economic tensions, pushing prices up 28%. Gold started the year at $2014 and touched $2,719 in late November after multiple highs.
Experts predict a wonderful 2025 for gold
Like gold, most financial assets fall after a tremendous rally. Market knowledge helps investors ignore the asset’s recent dip to $2,603. However, investors expect gold to do well in 2025 due to inflation and geopolitical difficulties in many Western nations.
Rick Kanda, Managing Director of Gold Bullion Company, called 2024 a milestone year for the asset. Kanda stated that the year 2024 was a record for gold. He made bold forecasts about the precious metal ahead of the year. It’s gone to new heights and broken records. Increasing demand, economic instability, and worldwide inflation are contributing factors, he stated.
Gold’s Strength in Uncertainty
Gold has done well when investors invest less in bonds and equity. It’s believed that gold’s additional uses give it worth. Not only is it a cash, but it also marks jewelry and other tech. Gold’s Surge and Bitcoin, UK gold marketplace Bullion Vault says investors doubt the worldwide situation will improve next year. The inauguration.
Donald Trump is expected to cause many tensions. Additionally, the platform expects users to consolidate rather than sell. Firm users estimate the asset might reach $3,070 by 2025, according to a recent survey. Most respondents attributed the increase in the number of yellow metals to geopolitical tensions and economic difficulties.
Donald Trump’s Bitcoin crusade amid rising debts
Most people hold gold due to economic and geopolitical tensions, but others cite sovereign debt. Economic growth is pressuring Western economies to increase state spending, resulting in huge deficits. Gold’s Surge and Bitcoin, In 2007/8, the pandemic worsened this trend.
Donald Trump may be using his newfound Bitcoin love. Most countries want to establish Bitcoin reserves, and the US wants to lead. After Bitcoin crossed $100k for the first time, President-elect Donald Trump announced a national Bitcoin reserve. In his NYSE speech, Trump said the US could do something nice with BTC.
US President’s Crypto Strategy
He stressed being ahead of other nations, a theme the incoming US president has always voiced. “We will excel in crypto, not to compete with China or others, but to stay ahead of the curve,” he stated. Critics have criticized the strategy, so it may not appeal to everyone.
Sceptics see the move as US government folly. They see the strategy as a way to raise borrowing costs, which could hurt the country. It could worsen inflation and hurt the dollar. A Bitcoin reserve could allow customers to use Bitcoin as collateral for loans at financial institutions. If the asset drops, the bank may lose money.
FAQs
How did Bitcoin perform in 2024?
Bitcoin surged above $100k in late 2024, largely driven by political factors like Trump's influence.
What factors contributed to gold's strong performance in 2024?
Gold saw a 28% increase due to rising geopolitical tensions, economic uncertainty, and inflation.
What is Trump's strategy regarding Bitcoin?
Trump plans for the U.S. to lead in cryptocurrency by establishing a national Bitcoin reserve.
Why is there skepticism about Trump's Bitcoin strategy?
Critics worry that it could raise borrowing costs, hurt inflation, and weaken the dollar.
