Bitcoin (BTC) and gold seem to be a popular choice of assets for investors depending on their age group. Both of these assets are seeing significant price increases as people worry about the future of global economies in the face of the ongoing coronavirus outbreak.
COVID-19 is driving people to invest in BTC and gold
According to Bloomberg analysts, investors they bet on Bitcoin and gold as a hedge against visible weaknesses in the stock market. Interestingly, older investors are increasing their exposure to gold, while younger investors are betting on BTC.
Gold has always been a de facto “safe haven” and this trend is not slowing down. For millennials, Bitcoin and tech stocks seem to be the preferred investment tools.
Some experts predict that the estimated $ 68 trillion asset transfer from the so-called boomers to the millennials in the next 25 years will cause BTC prices to skyrocket. According to Messari, a 1% allocation of institutional funds to BTC could lead to huge market capitalization, and bitcoin could go up to $ 50,000.
Growing appetite for alternative investments is driven by concerns about the long-term effects of the COVID-19 pandemic. Despite attempts to return to normal life, several industries are still suffering from downtime caused by the virus.
As previously reported, both retail and whale trading in bitcoin are on the rise. According to data from the Glassnode platform, the number of addresses with at least 0.1 BTC, 1 BTC, and 1000 BTC is at the highest level in history.
A safe haven and the weakening dollar
With a renewed interest in investing in safe haven assets, interest in bitcoin and gold has increased in recent weeks. Despite the March panic that triggered massive sell-offs in all investment markets, both assets experienced a significant recovery.
Bitcoin is currently at its highest in 2020 and is costing over $ 11,000 for the first time in more than a year. For the first time ever, gold rose to $ 2,000 an ounce. Silver also saw a huge increase in prices.
– CoinMetrics.io (@coinmetrics) August 5, 2020
All of these price increases are taking place while the US dollar is falling, due to the Federal Reserve’s continued printing of money. Investors who bought BTC using a stimulus check that was $ 1,200 should now have over $ 2,000.