Alex Krüger has changed his mind about the adoption of bitcoin by the central bank (BC).
He posted a tweet about it, talking about adopting BTC over gold.
Krüger even sees a modest entry into the market as having a huge effect
Renowned cryptocurrency trader and founder of Aike Capital, Alex Krüger, tweeted on January 1 that the bitcoin-gold relationship needed a closer look.
Sooner or later central banks (CBs) will hold bitcoins , says Krüger. The reason, he says, has to do with gold and the way central banks treat it.
In a series of tweets, Krüger shows how the demand for gold has changed in 2020.
I changed my mind.
Major central banks will eventually hold #Bitcoin as a reserve asset.
So let’s explore what central bank demand for gold looks like .
Habits are hard to change
Krüger begins by showing that central bank demand for gold has remained stable for much of the past ten years. However, it dropped dramatically in 2020. It also draws attention to the fact that adding liquidity pushes up gold prices.
So who bought gold? Without going into detail on why CBs have reduced their gold consumption so much, Krüger points out that institutional investors dominated demand in 2020. Jewelry, on the other hand, has fallen, as demand is price sensitive. .