Bitcoin rose to another all-time high on Monday at 1.74 million baht, or US$58,330.57 apiece, as physical spot gold hit a seven-month low with traders suggesting the current price dip is a good time to buy gold.
Bitcoin on Sunday surpassed for the first time the one-kilogramme gold price, which stood at about $57,300.
The market cap of bitcoin has scaled up to larger than $1 trillion, estimated to reach 10% of the physical gold market cap.
In baht, the all-time price of bitcoin also reached a new high of 1.74 million baht, a bit higher than the one-kilogram gold bar price (purity 99.99%) at 1.73 million baht.
“This is a good time to buy gold as I don’t think real gold will lose investors’ interest,” said MTS Gold Futures’ chief executive Nattapong Hirunyasiri.
Mr Nattapong said an asset whose price moves too quickly can fall just as quick.
“Although I am a high-risk lover, I feel uneasy about the bitcoin price surge,” he said based on personal experience with hard crashes in gold prices.
He said Elon Musk, CEO of Tesla who has become an influencer of market prices based on his public statements, also mentioned physical gold bullion and ETF as interesting assets, not only bitcoin and cryptocurrency.
Many parties have warned about the bitcoin price surge in a very short period spurred by fears of inflation from the flood of money injected into the US through its stimulus measures, but also investors looking for high yields over a short timeframe.
Yesterday, the global gold price rebounded to $1,780-1,795 per ounce, from a low of $1,759 per ounce last Friday.
In Thailand, the price announced by the Gold Traders Association was 25,400-25,500 baht per one baht gold weight, up from the 25,200 baht last Friday.
Tipa Nawawattanasub, chief executive officer of YLG Bullion and Futures, said this is a good time to purchase physical gold since the price correction is likely to be short term.
“The gold price in the medium and long terms is moving on an uptrend.”
Ms Tipa said the price in the medium term is expected to test the resistance range of $1,965 per ounce, then $2,075 per ounce. In baht, the first resistance is 27,950 baht per one baht weight, then 29,500 baht.