Data calculated by Finbold indicates that bitcoin’s average daily trading volume between January 1, 2021, and March 15, 2021, is at $70.18 billion. The figure accounts for 39.41% of gold’s $178.97 billion average daily trading volume for the same period.
Elsewhere, bitcoin’s market capitalization as of March 16, 2021, stands at $1.04 trillion. The amount accounts for just 9.46% of gold’s $10.99 trillion, an indicator that more investors are more speculative about bitcoin than the precious metal.
Bitcoin, gold trading volume remains significant amid a pandemic
The report offers the perspective on the trading volume for both bitcoin and gold amid the ongoing coronavirus pandemic. According to the research report:
“Both bitcoin and gold’s trading volume remains significant, partly due to the perception that the assets can act as a hedge against the risk of inflation, especially in the wake of the coronavirus pandemic. During the crisis, central banks resolved to issue stimulus packages and printed more money in return, devaluing traditional safe-haven currencies like the U.S. dollar. For instance, over the last 50 years, the dollar has depreciated by 85%, partly due to the government’s reaction during economic meltdowns. Overall, both bitcoin and gold remained resilient during the pandemic, especially when the traditional stock market collapsed before recovering.”
Currently, the two assets are battling for the safe-have status despite gold having the upper hand historically. However, the real safe-haven will stand in the post-pandemic phase.