Source:Getty images/ Thomas Trutsche
The price of a single Bitcoin went above the cost of an ounce of gold for the first time on Friday. While Bitcoin price ascended to $1,289.09 per unit, gold dropped to $1,231.5 based on March futures.
While the units of measurement of Bitcoin and gold are incomparable, the declining price of gold and growing price of bitcoin is still significant, Fortune reported.
The demand for gold that investors quickly hold on to in the scenario of unpredictability and volatility, has slided since the election on a stronger dollar, indications of future interest rate hikes and inherent business-friendly policies that may arise from the Trump administration.
Further, the upcoming regulatory changes would also increase the chances of higher-yielding stocks.
On the other hand, volatile digital currency has recovered from a plunge and that’s at least moderately due to predictions that one or more of three proposals for a Bitcoin exchange traded fund may likely gain approval from the Securities and Exchange Commission, Wall Street Journal reported.
Bitcoin’s price has reached conformity with the per-ounce spot price of gold, Coindesk reported. The per-ounce spot price for gold is $1,237.73 as per the XAU/USD spot exchange rate as provided by Bloomberg Markets. Comparatively, Bitcoin’s price is at $1,238.11, after having opened the day at $1,230.02, as per BPI data.
The new move follows a break to all-time highs for the price of bitcoin that began the year by crossing the $1,000 mark.
Prices have been experiencing unforeseen changes in recent weeks while breaking through a three-year-old high on Feb.23. Prices began to move up since then. Driving the price is a stiff bullish sentiment in the market as traders have probably be taken a positive direction towards the prospects of US SEC approving the first-ever Bitcoin ETF.
The SEC will pronounce its decision on March 11. However, its been more than three years since the gold and bitcoin reach parity last time, although its noteworthy that this was on Mt Gox which was the only exchange that had a price to reach parity.
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