On March 5, Bitcoin’s price surpassed $69,200 for the first time in its recorded history. The price of gold also hit a new record on the same day.
Gold, which attained its highest point on the same day, experienced prosperous developments in conventional financial markets, mirroring the momentous occasion within the Bitcoin community.
At approximately 1:30 pm UTC on March 5, spot gold surpassed its previous all-time high of $2,130, established in early December, according to data from TradingView. It had previously peaked at around $2,000 in early December.
Bitcoin also achieved a historic peak in less than two hours, pegged at $69,210 at 3:00 pm UTC. Ahead of its ascent to $69,000 on November 9, 2021, Bitcoin reached a new all-time high more than two years ago.
Since Bitcoin’s inception in 2009, the new all-time highs represented the first time, according to price statistics, that gold and Bitcoin set new records simultaneously.
The community promptly characterized the occurrences as an additional “bad day for fiat money,” given that Bitcoin and gold are frequently regarded as possible inflation safeguards.
According to some analysts, Gold and Bitcoin are surging to all-time highs on the anticipation of future interest rate cuts that will keep sovereign debt burdens manageable.
Concurrent all-time highs of gold and Bitcoin are taking place in the developed world against the backdrop of relatively high interest rates, or 4.5% or higher, according to StoneX global director of research Matthew Weller. The analyst stated in a statement to Cointelegraph as follows:
“From elevated risk appetite to sticky inflation to record debt levels to ongoing geopolitical tensions in the Middle East and Eastern Europe, there are plenty of reasons that traders are seeking out alternatives to traditional fiat currencies in the current environment.”
Weller noted that the intense inflows of spot BTC exchange-traded funds in the United States and anticipation surrounding the forthcoming quadrennial halving event are major contributors to Bitcoin’s current rally.
During the period of unprecedented price increases, confident prominent Bitcoin supporters have voiced greater assurance in Bitcoin as opposed to gold.
“I’m investing in Bitcoin over gold all day, every day,” billionaire Shark Tank star Mark Cuban said in a CNBC interview on March 5.
Notable gold investor Peter Schiff subsequently refuted the claims made by Cuban. In an X post, Schiff argued, “This shark is swimming in the incorrect tank.”
Bitcoin has gained 52% year-to-date as of the time of writing, according to CoinGecko data. Spot gold has increased by approximately 2% since the start of January.