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If it were it would be rallying as a safe haven as draining USD liquidity and the risk of war roiled markets. Instead, since BTC peaked, gold has given it an absolute flogging:
It must be said that FOMC tightening often hits gold as well, once we reach a certain point of crisis in markets and the USD become the only play in town. But gold is certainly holding up better than BTC in the meantime. Especially so as geopolitical risk mounts.
In short, BTC is more a leveraged USD liquidity derivative than it is gold.
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I’m shocked. Shocked, Mr Winkelvoss!
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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