Bitcoin’s Role as ‘Digital Gold’ Will Aid Further Demand, Traders Say

Traders continue to point out bitcoin’s supposed role as ‘digital gold,’ amid economic headwinds in the U.S., as a possible price catalyst.

AccessTimeIconNov 7, 2023 at 10:41 a.m. UTC

Bitcoin (BTC) kept steady under the $35,000 level in the past 24 hours, with meme coin dogecoin (DOGE) driving gains for traders.

Tokens of major blockchains such as Solana’s SOL, BNB Chain’s BNB and Cardano’s ADA lost as much as 3% as traders likely took profits after a broader crypto rally last week. SOL pared gains after a nearly 70% jump in the past month, data shows.

Meanwhile, XRP reversed gains after jumping 10% on Monday. Monday’s surge was prompted by Georgia and Dubai announcing they will use payment firm Ripple's services, which buoyed trader sentiment.

Some traders told CoinDesk that they expect bitcoin to play a key role as “digital gold” – a likening as a hedge to traditional markets offerings, such as stocks – as a possible price catalyst.

“I think the general public’s education about the seriously difficult fiscal situation facing the United States is growing, along with a rising appreciation of bitcoin’s role as a hedge against this financial situation,” shared Banxa CEO Richard Mico in an email.

“The U.S. is now well over $33 trillion in debt, in addition to the unfunded liabilities of approximately $170 trillion. And, really, the only way out of this looming debt crisis is quantitative easing, or money printing, that will inevitably debase the dollar,” Mico said, adding bitcoin was poised to “be gold 2.0” amid such headwinds.

“There will be pullbacks and volatility more generally, but the setup for bitcoin and crypto as a whole is looking more and more auspicious,” Mico stated.

Edited by Parikshit Mishra.


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Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.

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