Bitcoin and Gold Surge Together for First Time Since 2009

ChainCatcher reports, citing CoinDesk, that Bitcoin has risen 7% in the past five days, surpassing $64,000 for the first time since August 26. Simultaneously, gold has hit record highs over 30 times this year, breaking through $2,600 per ounce. Charlie Bilello, Chief Market Strategist at investment management and financial planning firm Creative Planning, stated that this marks the first time since Bitcoin's inception in 2009 that both Bitcoin and gold have been the top-performing assets in a given year.

Analyst James Van Straten attributes this exceptional performance of Bitcoin and gold to increased global liquidity, expansion of global central bank balance sheets, and the recent Fed rate cut, which stimulate investment and economic activity. The Fed's current balance sheet sits at $7.1 trillion, with quantitative tightening still ongoing but at a slower pace. The decrease in reverse repo balances, currently just above $300 billion, has released liquidity back into the financial system. This stimulative effect increases the availability of funds for lending, investment, and overall economic activity.

Looking at a broader perspective, the combined balance sheets of the top 15 central banks globally (including the U.S., EU, Japan, and China) approach $31 trillion. While the figure itself is not the focus, the trend reveals a global resurgence in central bank balance sheets since July, rising from approximately $30 trillion. This increase in liquidity has been particularly stimulating for Bitcoin, as its movements tend to align with liquidity trends. In addition, the Fed's 50-basis point rate cut has further bolstered the rise of Bitcoin and gold.