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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