Gold's Lower Volatility Than Bitcoin Gives It an Edge When the Markets Wander in Uncertainty

Gold recorded a 0.04% over the past day and is trading at $2,584 at the reporting time, per data from Trading Economics.

Bitcoin (BTC) dropped below the $60,000 mark on Sept. 15, sparking fears of another downfall among investors. However, gold’s steady upward momentum made it a better investment alternative.

The fall of Bitcoin (BTC) price below the $60,000 mark on Sept. 15 triggered fears of another downfall among investors. Meanwhile, gold’s steady upward momentum made it a better investment alternative since “investors are still cautious of general uncertainty,” according to Maruf Yusupov, co-founder of the gold-backed stablecoin Deenar, who spoke with crypto.news.

After reaching an all-time high of $2,589 on Sept. 14, gold recorded a 0.04% gain over the past day and is trading at $2,584 at the reporting time, as per data from Trading Economics. On the other hand, Bitcoin was trading down by 22% from its ATH of $73,750, around the $58,000 zone.

“The limited volatility of Gold has made it an attractive alternative in the push to hedge against the underlying uncertainty,” Yusupov added.

As reported by crypto.news, spot BTC exchange-traded funds (ETFs) crossed the $61 billion mark in terms of total assets under management (AUM), reaching 25% of the gold ETF AUM’s $257 billion in six months.

However, the recent market-wide turmoil and mixed sentiment toward the U.S. Federal Reserve rate cut brought increased outflows, with BlackRock surprisingly joining the outflow trend.

“Though it is too soon to claim that traditional investors are moving toward gold, the market data generally favors this theory,” Yusupov said.

Bitcoin recorded a 0.24% dip in the past 24 hours and is trading at $58,500 at the time of writing. The cryptocurrency market cap declined by 1.2% and is currently sitting at $2.13 trillion, according to CoinGecko.

The downward momentum comes amid mixed reactions toward the expectations of a 50 basis point rate cut by the U.S. Fed.