Kitco: Bitcoin Inflows Signal the End of U.S. Dollar Dominance, and this is Just the Beginning

Gold and bitcoin have been top-performing assets for 2024. Gold prices topped out at $2,800 per ounce before pulling back in November. Bitcoin peaked in the spring, then pulled back over the summer, only to rally to new highs in November.

Bitcoin has now more than doubled in 2024 to the $100,000 range. Plus, with gold trending higher, these assets look primed to continue rallying.

For bitcoin, the move has been driven by several factors. First are the rise of bitcoin-related ETFs.

These funds make it easy for investors to own bitcoin in a retirement account. Plus, bitcoin’s halving in the spring should follow prior four-year cycles. If so, bitcoin prices should continue to rally into mid-to-late 2025.

After that, a crypto winter could set in. Investors may want to take some profits in bitcoin in the middle of next year.

Meanwhile, gold continues to see strong demand from central banks. And retail investors have yet to heavily shift to precious metals.

That trend could change in 2025. Continued inflation running above trend and geopolitical instability should both bode well for gold. That could also help gold mining companies break out of their funk and move higher.

Either way, both gold and bitcoin offer investors the prospect of strong returns in 2025.

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