Bitcoin has often been described as digital gold, even though the price has more closely followed the stock market. However, BTC has closely been following Gold since Sillicon Valley Bank went insolvent.
In my view, this has to do with the fact that people are hedging themselves against further banking crises and potentially losing large parts of their investments. Since Gold is highly liquid rare mineral which is always in demand, it makes a popular hedging product. Same goes for Bitcoin. Limited supply, highly liquid and great potential future growth.
I'm going to look at Gold for a while to try to predict Bitcoin's price action. Main question remains, for how long will BTC follow Gold? My best guess is that it will follow Gold until the banking sector is safe.
Do you think Bitcoin = Digital Gold? Share your thoughts.