The Currency analytics
By Jean-Luc Maracon
Gold just hit new highs. Bitwise Asset Management's Chief Investment Officer Matt Hougan thinks the rally shows people don't trust fiat currencies anymore, especially as crypto…
The precious metal climbed past $2,000 per ounce this month, reaching levels not seen since 2020.
The Securities and Exchange Commission won't stop poking around digital assets. Gary Gensler keeps talking about enforcement actions.
Bitcoin dropped below $40,000 twice in January, making investors nervous. Ethereum fell even harder, down 15% in two weeks. Other altcoins basically collapsed.
And crypto still can't crack mainstream payments. Sure, more people know what Bitcoin is now. But try buying coffee with it. Good luck.
Bitwise manages billions in crypto investments but even they're pushing for regulatory clarity.
Meanwhile gold bugs are having a field day. The Federal Reserve's low interest rate policies make the metal more attractive. When cash pays nothing, gold looks better.
BlackRock CEO Larry Fink stays cautious about crypto too. The world's biggest asset manager won't fully commit to digital assets without "robust regulatory frameworks.
Retail investors still trade crypto but they're way more careful now. Robinhood reports steady volumes but nothing like the 2021 frenzy.
The International Monetary Fund jumped into the debate too. They told countries last month to establish "clear guidelines" for digital asset risks.
Some companies still believe in blockchain technology even if crypto prices stink. IBM announced plans January 15 to expand blockchain applications in supply chain management.
Gold's rally caught everyone's attention. Hedge fund positions in gold futures jumped 40% since December according to CFTC data.
The crypto market needs to prove itself now. All the promises about replacing traditional finance sound hollow when Bitcoin can't hold $45,000.
Market participants face tough choices between old and new assets. Gold offers stability but limited upside. Crypto promises huge gains but delivers huge losses too.
Hougan's probably right about fiat currency concerns driving gold higher. When governments print money endlessly, hard assets look better.