The title of this article may seem positive, but in reality it is a conclusion that arises from recent events in favour of how Bitcoin (BTC) integrates its narrative as a reserve asset.
One of the latest Galaxy Research Reports supports this vision. For analysts, the fact that Bitcoin is marking a new historic largest (ATH) of $111,900.”It’s surprising because of the macroeconomic context in which it occurred.
“This rebound contrasts with the broader weaknesses of the market as US actions (the S&P 500 and NASDAQ 100) are falling and treasure ties yields are rising,” the expert said.
In other words, stocks cut price declines and treasured debt is highly valued, while BTC arises as alternative and decentralized coverage amid macroeconomic uncertainty. It further shows that BTC has begun to separate itself from assets considered risk.
Another issue to highlight is the 1.7% increase in traditional shelters in Golden Shelters in the week of May 20th-27th. Low BTC performance figures rose by more than 8% during the same period.
For Galaxy analysts, this reveals that “BTC acts like more value when moving along with gold, but when BTC enters a new phase of price discovery it outweighs it both in size and impulse.”
According to his paper, Bitcoin’s price rebound may have been caused after Moody’s, one of the leading credit risk rating agencies around the world. Reduce the perspective of US sovereign debt From “stable” to “negative”.
As reported by Cryptonotics, after the qualifications were known, the yield on US Treasury bonds increased, with the 30-year-old’s total amount exceeding 5% for the first time since April. On that side, assets that take into account risks such as actions and cryptocurrency were painted red.
Whenever the macroeconomic context does not provide any indication of stability, investors choose to reduce exposure to risky assets and place their holdings in safer goods, such as treasure debts with low yields but not exposed to market volatility.
However, taking this opportunity, Bitcoin recovered rapidly. In this regard, the experts state: “After the announcement, stocks, bonds and the US dollar have declined, but BTC and gold have risen, an early indication that the market is reassessing risks and prioritizing non-sovereign assets.”
It is important to clarify that concerns about sovereign debt are not exclusive to the US. In Japan, long-term bond yields reached historic maximums due to low demand for purchasing by the Asian Central Bank.
And while macroeconomic uncertainty and distrust of sovereign debt has grown, Bitcoin is shining. But their actions are not coincidental; However, reflecting changes in perception among investorsit starts to see the true value that BTC has. For everything, for many, it is considered “digital gold.” Because of its similar properties in precious metals, it is a decentralized asset and resists censorship by banking institutions and governments.
BlackRock, the world’s largest asset manager, predicted that “as more investors understand and appreciate the nature of Bitcoin’s ‘digital gold’, it would be reasonable to expect them to continue using this tool and could maintain or raise long-term prices.
Similarly, BlackRock describes BTC as a “unique diversified asset,” with its characteristics as “a growing coverage of risks that traditional assets cannot handle, particularly geopolitical and economic uncertainty.”
And these characteristics have attracted the interest of businesses and governments such as El Salvador and the US, and view BTC as a potential asset greater than the gold potential.
In this respect, Galaxy Research refers to this phenomenon that “continues to offer a certain price.” It also highlights the strategy of asset purchasing through strategy (formerly known as MicroStrategy) and metaplanet. Expanding institutional adoption for BTC.
Currently, the strategy ranks number one in the Treasury cited companies in the stock market with more BTC. Accumulates a total of 580,250 BTC. Meanwhile, Metaprenet ranks 11th with 7,800 BTC.
For Galaxy analysts, BTC is increasingly negotiated in line with the proposals for core value propositions: decentralized and zero low value reserves.
At this point there is a fundamental problem that demonstrates it. BTC may be worth more than gold: its scheduled shortage. The supply of digital currency is limited to 21 million units, and its broadcasts were cut every four years at an event known as half. This is a factor that affects its prices in the medium term due to the supply and demand dynamics. If more businesses, governments, and individuals decide to incorporate BTC into their reservations, this additional pressure-on-demand can raise prices at unthinkable levels.
For that part, the supply of gold is uncertain and depends on factors such as mining, recycling, and technological advances. And this is where risk appears. This is because if the increase does not involve real demand, its traditional role as a reserve of precious metals and value is questionable.
The most impressive thing is that it has been around for just 16 years. BTC was able to convert speculative instrument images Consolidate as a true reserve asset.