Bitcoin's price has seen a significant increase as gold loses its bullish edge, suggesting a rotation of capital from gold into the leading cryptocurrency. The ratio between bitcoin's price and gold's price surged 12% on Wednesday, the largest single-day outperformance since February 2022. This breakout confirms the end of an eight-month downtrend and indicates a renewed outperformance of bitcoin compared to gold. Factors such as hedging against currency debasement and capitalizing on the Trump market play are likely to favor bitcoin over gold. In addition, bitcoin could benefit from expected regulatory clarity and increased institutional adoption under the Trump administration. The future of gold will depend on expectations of elevated interest rates under Trump, which may diminish its appeal.



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