- Saylor predicts $100T will shift into digital assets, surpassing traditional markets.
- Ethereum soars to 4,172, signaling increased investor interest in digital currencies.
- U.S. tariffs on gold imports spark volatility, driving more investors to digital assets.
Michael Saylor, founder of Strategy, forecasted a $100 trillion capital shift from traditional equity and credit markets into digital assets, outpacing fiat investments. This prediction comes as Ethereum breaks $4,000 for the first time since December and is currently trading at $ 4,172.96 as of press time. Meanwhile, with the spike in gold prices due to the U.S. tariffs, conventional investment markets face increased uncertainty.
Saylor’s prediction points to the expanding functions of digital assets like Bitcoin and Ethereum. He stated that the digital asset sector will soon topple the traditional market following institutional interest and the evolving financial patterns globally. Further, he pointed out that Bitcoin and Ethereum, which were considered a new frontier of investment, garnered attention with the surge of Ethereum.
Ethereum’s Surge Signals Shift To Digital Assets Over Gold
Ethereum (ETH) surged by 7.09% in the past 24 hours, breaking through the $4,000 mark for the first time since December. It has risen more than 50% from last year, while Bitcoin has remained relatively flat at $116,717, with a 43.23% increase in the ETH/BTC price ratio over the past month
The recent surge in Ethereum’s price is noteworthy, especially following a period of relative stability in Bitcoin, suggesting that investors may be increasingly interested in altcoins. The rise of Ethereum might indicate that cryptocurrencies are finally considered a real alternative to more classic investments, such as precious metals.
However, the gold market is in a turbulent situation. U.S. President Donald Trump imposed a tariff on gold imports, and the gold futures rose to $3,534 an ounce. The unusual action has cast doubts over possible supply disturbance and inflation..
Gold Market Turmoil Fuels Growing Interest in Digital Assets
In his X post, Bitcoin critic Peter Schiff revealed that the tariffs have added a layer of uncertainty to the gold market, already affected by rising geopolitical tensions. “Trump’s tariffs on 100-ounce and 1-kilo gold bars could disrupt the COMEX, causing a price spike.
Short sellers may act quickly to cover their positions to avoid a 39% tariff on gold bars imported from Switzerland if long positions are delivered. All such gold, even if not imported, will trade at premiums, further complicating the market.
Among the reasons why Ethereum and other digital assets are becoming attractive is the likelihood of instability in the gold market. In contrast to gold, neither Ethereum nor Bitcoin has physical constraints like weight or tariff. They are more liquid with ease of transfer and speed, and are more attractive to investors seeking stability in uncertain times.
The rationale behind Saylor’s $100 trillion prediction revolves around the fact that the future of finance is digital assets. He stated that Bitcoin and Ethereum are borderless and decentralized, which makes them safe-haven assets in the world of uncertainty. Moreover, the spike i Ethereum price indicates that more people are relying on the digital asset sector as a competitive market rather than traditional exchanges.
Related: Dalio’s 15% Portfolio Allocation: Gold and Bitcoin’s Role in a Financial Crisis
Although the fact that Ethereum reached over $4,000 is rather substantial, it is not clear if this is the start of the mass exodus of funds. This indicates a response to macroeconomic insecurity, with recent gold prices spiraling due to tariffs and geopolitical concerns.
Earlier, gold rallies have frequently been accompanied by upbeat returns in Bitcoin, which is a form of alternative safe-haven asset that some traders consider. In the last 24 hours, tokenized gold assets like PAX Gold (PAXG) and Tether Gold (XAUT) experienced modest gains, while Bitcoin saw a decline of nearly 0.74%.
With the rising popularity of Ethereum and other digital assets, it could signal an irreversible shift in global finance. Further, with the turmoil in gold mining and price fluctuations, chances are high for Bitcoin and Ethereum to replace traditional investments.
