Bitcoin (BTC) achieved a momentous milestone on March 5, shattering the $69,200 barrier for the first time in history. This historic event coincided with significant developments in traditional financial markets, as gold also reached its all-time high on the same day. TradingView data revealed that spot gold broke its previous record, surging to $2,130 at approximately 1:30 pm UTC. This surpassed its previous high of around $2,000 set in early December. In less than two hours, Bitcoin followed suit and achieved its own historic high, reaching a price of $69,210 at 3:00 pm UTC. It had been more than two years since Bitcoin last reached $69,000 on November 9, 2021.
These new all-time highs marked the first instance where both Bitcoin and gold reached record levels simultaneously since Bitcoin’s emergence in 2009, as shown on the price charts. The community quickly interpreted this as another blow to fiat money, as both gold and Bitcoin are often seen as potential safeguards against inflation and fiat currencies.
Some analysts believe that gold and Bitcoin are rallying to new highs due to the anticipation of lower interest rates in the future, which would help manage sovereign debt loads. This simultaneous surge in gold and Bitcoin comes at a time when developed countries are experiencing relatively high interest rates, typically 4.5% or higher, as stated by Matthew Weller, the global head of research at StoneX. In a statement to Cointelegraph, Weller explained that Bitcoin’s ongoing rally is primarily fueled by excitement surrounding the upcoming quadrennial halving event and the significant inflows in spot BTC exchange-traded funds in the United States.
Amid these historic highs, prominent Bitcoin bulls have expressed their confidence in Bitcoin over gold. Billionaire “Shark Tank” star Mark Cuban declared in a CNBC interview on March 5 that he chooses to invest in Bitcoin over gold every day. However, well-known gold bull Peter Schiff disagreed with Cuban’s statements and argued against them.
As of now, Bitcoin has seen a 52% increase year-to-date, according to CoinGecko data. On the other hand, spot gold has only experienced a modest 2% increase since the beginning of January.