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Bitcoin & Gold Soar To All-Time Highs Once Again

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Once again, both Bitcoin and gold surged to new record highs during Monday’s trading session, amidst volatile market conditions fueled by crypto excitement and sustained interest in the precious metal across global financial arenas.

Over the past weekend, the value of Bitcoin and various alternative cryptocurrencies skyrocketed, with some reaching unprecedented peaks and others hitting their highest levels in years. Bitcoin briefly revisited the $70,000 mark amid this flurry of activity.

As the US dollar faced pressure and yields on US Treasury bonds declined, gold prices soared, smashing through the $2,187 per ounce barrier. Despite technically being in overbought territory, the surge continued in anticipation of key inflation data from the world’s largest economy in the coming week.

The market found further reinforcement from optimistic forecasts, including upgrades to the Ethereum blockchain platform, housing the second-largest cryptocurrency, ether, and an upcoming Bitcoin “halving” event in April, which curbs the rate of Bitcoin production. This positive sentiment translated into billions of dollars flowing into ETFs in recent weeks.

The approval of eleven spot Bitcoin ETFs by the US marks a significant milestone, sanctioned by the Securities and Exchange Commission after a prolonged crypto winter punctuated by notable corporate collapses and scandals.

Even traditionally cautious institutional investors are now diving into cryptocurrencies for long-term investment opportunities, potentially fueling the ongoing surge. Notably, the top ten US spot Bitcoin funds witnessed net flows totaling $2.2 billion in the week ending March 1, with BlackRock’s iShares Bitcoin Trust (IBIT) alone attracting over $2 billion.

Prominent hedge fund manager Bill Ackman has redirected his attention towards Bitcoin, envisioning scenarios where the cryptocurrency’s value could surpass even the loftiest predictions. In a statement, Ackman highlighted the cyclical relationship between Bitcoin price increases, energy consumption, inflation, and demand dynamics.

Meanwhile, the precious metals market saw a marginal uptick in spot gold prices, reaching $2,180 per ounce on Monday following last Thursday’s record settlement dating back to 1979. Conversely, spot silver prices edged up by 0.2%, continuing an upward trajectory after a more than 5% increase the previous week.

The surge in precious metal prices is fueled by mounting expectations of interest rate cuts by the United States. Federal Reserve Chair Jerome Powell’s recent comments hinted at the possibility of rate reductions, citing proximity to the threshold necessitating such actions.

Gold which is traditionally regarded as a haven asset during times of financial uncertainty, has shown resilience despite elevated interest rates and a robust US dollar, reaffirming its status as a go-to asset in turbulent economic climates.