Bitcoin’s allure as the new gold fizzles during Ukraine tensions

Bloomberg/Sunil Jagtiani/2-21-2022

“Bitcoin’s price relative to gold has dropped to the lowest level since the middle of 2021. The standoff between the West and Russia over Ukraine is stoking risk aversion, hurting so-called digital gold as cryptocurrencies slide but supporting the traditional haven of bullion. One Bitcoin is now equivalent to about 19 ounces of the yellow metal, down from a peak of some 37 ounces in October.”

USAGOLD note: This is what happens when investors seek a true safe haven amidst economic uncertainty. They sell risk and they buy safety.  And in keeping with our theme of the day: It is not just Ukraine driving the flow of capital.

Chart courtesy of TradingEconomics.com