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Goldman Sachs says the rise of bitcoin won’t harm Gold.

Anchorage, a leading crypto firm that provides exposure to digital assets, today announced that it had raised $350 million in
Anchorage, a leading crypto firm that provides exposure to digital assets, today announced that it had raised $350 million in funding.

Goldman Sachs, one of the world’s biggest investment banks, reportedly sent a note to investors, reassuring its clients that Bitcoin does not pose an existential threat to Gold, Bloomberg reported on Dec. 18. “We do not see evidence that Bitcoin’s rally is cannibalizing gold’s bull market and believe the two can coexist,” the company wrote. However, the bank still admitted that Bitcoin’s ongoing rally could steal some demand from gold investors. The price of bitcoin surged above $23,000 for the first time today.

“We do not see Bitcoin’s rising popularity as an existential threat to gold.”

Goldman Sachs noted, “Gold’s recent underperformance versus real rates and the dollar has left some investors concerned that Bitcoin is replacing Gold as the inflation hedge of choice. While there is some substitution occurring, we do not see Bitcoin’s rising popularity as an existential threat to Gold’s status as the currency of last resort.” After bitcoin broke above its new all-time highs in December, global investors are increasingly moving into the cryptocurrency. Christopher Wood, the global head of equity strategy at independent investment bank Jeffries Financial, has reportedly cut his gold exposure to buy more Bitcoin.

Increased institutional interest in bitcoin.

According to the Business Standard report, the renowned market analyst Christopher Wood is trimming his gold investment for the first time in several years. He wrote in a note to investors that his bitcoin allocations account for 5% of his portfolio. “The 50% weight in physical gold bullion in the portfolio will be reduced for the first time in several years by five percentage points with the money invested in Bitcoin. If there is a big drawdown in bitcoin from the current level, after the historic breakout above the $20,000 level, the intention will be to add to this position.” Microstrategy also bought millions of worth of bitcoin earlier.

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