Bitcoin, the world's largest cryptocurrency, has seen a 15% increase in price over the past 90 days, outperforming major commodities like Crude Oil and Gold. Despite a major sell-off in global bank shares, Bitcoin breached the $30k price level on April 15, 2023, and is currently trading at an average price of $27,844 with a 24-hour trading volume of around $13.61 billion. However, recent data suggests that the market is experiencing a correction, with low volatility and a narrow trading range, and it is expected that equilibrium might get disturbed ahead.

Gold prices reached a new record high of $2,080.72 an ounce after the Federal Reserve raised interest rates. However, market commentators are criticizing the Fed's decision to continue hiking interest rates and predict a future stall. Bitcoin also saw a slight rally, trading above $26,000 after the Fed's decision to raise interest rates to the highest point in 16 years but signal a pause for future hikes. Financial analysts believe that a pause in rate hikes is here to stay due to worsening economic situations and bank stresses. Critics of the Fed's approach to handling inflation point to the collapse of regional banks and say that decisions are now based on politics rather than rational decisions.

As the US debt ceiling talks continue without any progress, economists are concerned that this could lead to a major global financial crisis. Despite politicians claiming that there will be a soft landing, Robert Kiyosaki disagrees and advises investors to turn to gold, silver, and bitcoin for protection. The inability of Republicans and Democrats to come to a decision on raising the debt ceiling raises questions about whether the US will default on its debt for the first time, and even if a deal is reached, the damage to the world's largest economy may have already been done.

According to a recent survey by Bloomberg's Markets Live Pulse, investors are increasingly turning to gold as a safe haven asset due to the risk of a US debt default. More than half of the 637 finance professionals surveyed expressed their preference for gold in the event of a potential default. The limited alternatives available to investors in such a scenario, including US Treasuries, traditional safe haven currencies, and even Bitcoin, further reinforce the appeal of gold as a reliable investment option. However, it is important to consider historical precedent and expert opinions, which suggest that the likelihood of default remains relatively low.

Zimbabwe is currently facing hyperinflation and a depreciating local currency, prompting the Reserve Bank of Zimbabwe (RBZ) to sell gold-backed cryptocurrencies valued at 14 billion Zimbabwean dollars. The RBZ Gold-backed Digital Token will be used for payments and as a store of value, with the aim of expanding value-preserving instruments and enhancing investment divisibility. However, the International Monetary Fund (IMF) has warned against adopting the digital currency as a solution to the country's macroeconomic problems, citing potential risks and costs that should be carefully assessed. The RBZ's first sale of the gold-backed digital tokens was backed by nearly 140 kilograms of gold and fetched a minimum price of $10 for individuals and $5,000 for corporations, with a minimum vesting period of 180 days.

Tether, a stablecoin issuer, reduced its bank deposits from $5.3 billion to $481 million in Q1 to mitigate the risk of bank failures. The company also diversified its asset reserves by adding gold and bitcoin, which account for 4% and 1.8% of its total reserves, respectively. The US government is reportedly planning to crack down on crypto exchanges. Meanwhile, Lido Finance has staked over 6.2 million ETH, and the next bullish catalyst for Bitcoin is said to be the realized price getting above Long Term Holder RP. CZ, the CEO of Binance, has unfollowed Elon Musk on social media, causing speculation in the crypto community. Lastly, JPMorgan and financial regulators have accused Gary Gensler of jurisdictional overreach and disrupting well-functioning markets.

The price of gold has been increasing in comparison to Bitcoin, leading to speculation about the significance of this trend. Bloomberg Intelligence’s Senior Commodity Strategist, Mike McGlone, suggests that the Bitcoin rollover risks lean toward deflation, emphasizing the importance of this development. This article analyzes the recent disparity between gold and BTC prices, considering factors such as market sentiment, regulation, volatility, and environmental concerns. While the current pattern suggests a preference for gold, the future evolution of both assets remains uncertain, and investors should carefully evaluate market conditions and factors influencing gold and BTC prices to make informed decisions regarding their investment portfolios.

According to Bloomberg Intelligence’s Senior Commodity Strategist, Mike McGlone, the recent trend of gold prices increasing relative to Bitcoin prices is significant and could continue. Bloomberg data shows that as of May 8, 2023, the price of gold was up 10% year on year, while Bitcoin was down almost 20%. McGlone believes that Bitcoin rollover risks lean toward deflation. Bloomberg’s analysis shows a correlation between the S&P 500’s peak and trough, its 100-week moving average, and the Bitcoin/gold ratio. However, opinions on the future of both gold and Bitcoin can vary widely, and there is no way to predict with certainty how the disparity will evolve in the future.

Investors are seeking safe haven assets amidst economic uncertainty, with gold and Bitcoin being considered viable options. Bloomberg's senior commodity strategist, Mike McGlone, believes that gold will continue to outperform Bitcoin in the coming months due to factors such as the Bitcoin-to-gold ratio. However, he maintains his bullish stance on Bitcoin and notes that both assets have been touted as possible safe havens due to inflationary pressure and the ongoing banking crisis. McGlone's sentiment follows his previous analysis that gold would likely outperform Bitcoin in a recession, especially if it involves a stock market downturn.

Tether, the stablecoin issuer, has reported a net profit of $1.5 billion for Q1, more than double the previous period, according to its attestation report. The company's consolidated total assets were at least $81.8 billion as of May 9, with consolidated total liabilities of $79.4 billion, resulting in excess reserves of at least $2.44 billion, an all-time high. Tether has also included additional categories in its reserves reporting for the first time, including bitcoin, physical gold, overnight repo, and corporate bond allocations. The company holds $1.5 billion worth of bitcoin and $3.3 billion worth of precious metals.