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Tracy Jin, the Chief Operating Officer of MEXC, has stated that Bitcoin is now valued at more than a kilogram of fine gold. This development indicates that Bitcoin is gaining popularity as "digital gold" and gaining significance in the global financial landscape. Jin emphasized that Bitcoin is evolving from being a driver within the crypto ecosystem to a vital store of value, becoming an essential part of diversified investment portfolios worldwide.
Despite this notable achievement, Jin pointed out that gold has outperformed Bitcoin so far this year. While Bitcoin has seen a rise of 12 percent, gold's price has increased by 23 percent. This trend suggests that many investors are choosing to hold their wealth in gold to navigate economic instability.
Bitcoin has experienced consistent momentum over the past six weeks, with its recent price closing at nearly $106,500. Jin noted that the $105,800 value represents a critical resistance zone. If Bitcoin surpasses this resistance, it could potentially rise to $109,000, with estimates suggesting it may reach $130,000 by the third quarter and $150,000 by the end of the year. However, she cautioned that volatility could still be a significant concern.
SOURCE: CoinMarketCap
The value of Bitcoin at press time is at $105,535, a moderate increase of 1.26 percent over the past 24 hours. Although gold maintains a larger market capitalization, Jin argued that Bitcoin benefits from limited, full transparency and programmable infrastructure. By investing in these features, investors now have another option to minimize the risks caused by devaluing fiat currency and government debt.
JPMorgan analysts echoed this view in a recent report, noting Bitcoin’s increasing market share at gold’s expense due to growing corporate interest and support from U.S. institutions. Between mid-February and mid-April, gold had an upward trend in relation to Bitcoin, but that scenario has now changed. They expect this trend to continue, pointing out that Bitcoin may head higher.
As reported in August, Strategy (formerly MicroStrategy) wants to use $84 billion for Bitcoin by 2027 and has already invested almost $25 billion. Additionally, states like New Hampshire and Arizona have enacted laws allowing Bitcoin investments and digital asset reserves, signaling expanding governmental acceptance.
Recent developments in the U.S. Treasury market have added to the appeal of hard assets such as Bitcoin and gold. The 30-year Treasury inflation-protected securities (TIPS) yield rose to 2.7 percent, reaching its highest level since 2001. This shows that investors are looking for higher returns and are more worried about the strength of the U.S. finances than about inflation or growth.
Experts note the breakdown of typical correlations between bond yields and currency markets, indicating growing skepticism about U.S. fiscal stability. Rising real yields and fiscal pressures have increased interest in assets that serve as stores of value.
Veteran trader Paul Tudor Jones and others suggest that historical government responses to debt crises, such as inflation and monetary expansion, support investment in Bitcoin and gold. Although market volatility may cause short-term fluctuations, both assets appear positioned to benefit from ongoing economic challenges.
