Matrixport Research: Macroeconomic Factors May Drive Up Demand for BTC and Gold
In 2024, gold rose by 31%, and BTC surged by 59%, outperforming traditional assets.The sustained demand for BTC and gold is driven by two major macro trends: the efforts of central banks to reduce dependence on the dollar and the rapid rise in sovereign debt levels. These forces are expected to drive the continued growth of both assets in the long term. Investors may consider holding these two assets, as they have performed well this year and may continue to benefit from the aforementioned macroeconomic changes.
Central Bank Purchases Continue to Drive Up Gold Value
In 2024, gold rose by 31%, while BTC surged by 59%, outperforming traditional assets such as bond ETFs and the S&P 500 (+22%). Retail demand for gold has expanded, with Costco selling $200 million worth of gold each month, particularly as central banks in emerging markets continue to purchase gold to hedge against dependence on the dollar. This trend is particularly evident in countries like China, which are seeking to reduce their reliance on the dollar.
BTC's Unique Position as a Speculative Asset and Store of Value is Gaining Recognition
With increasing institutional interest, such as the approval of BTC spot ETFs and significant investments from companies like MicroStrategy, BTC is becoming an increasingly indispensable part of the financial ecosystem. Central banks indirectly acknowledge the importance of BTC by investing in proxy companies like MicroStrategy.
The Demand for Gold and BTC's Anti-Inflation Properties is Rising in the Current Context
Concerns about global economic instability, soaring government debt levels, and the potential for rising inflation are also driving demand for gold and BTC. As governments may need to print more money to repay debts, these two assets provide protection against currency devaluation. Investors who have included BTC and gold in their portfolios have seen substantial returns this year and are expected to benefit from these long-term trends.
Tokenized Assets like Gold Tokens Provide On-Chain Alternatives to Traditional Gold Investments
The growing trend of tokenized assets linked to gold prices opens a new avenue for investors, providing on-chain alternatives to traditional gold investments. For example, Matrixdock recently launched the gold token XAUm, strictly adhering to the principle of "1 XAUm = 1 troy ounce (toz) of gold," allowing users to easily verify the logic of the product and the corresponding amount of physical gold. This innovation is expected to further drive demand for gold and BTC during periods of economic uncertainty.
The above viewpoints are sourced from Matrix on Target. Contact us for the complete report on Matrix on Target.
Disclaimer: The market carries risks, and investment should be approached with caution. This article does not constitute investment advice. Trading in digital assets may involve significant risks and volatility. Investment decisions should be made after careful consideration of personal circumstances and consultation with financial professionals. Matrixport is not responsible for any investment decisions made based on the information provided herein.
