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Bitcoin’s Role as ‘Digital Gold’ Will Aid Further Demand, Traders Say
Traders continue to point out bitcoin’s supposed role as ‘digital gold,’ amid economic headwinds in the U.S., as a possible price catalyst.
Updated Nov 7, 2023, 10:41 a.m. Published Nov 7, 2023, 10:41 a.m.
Bitcoin [BTC] kept steady under the $35,000 level in the past 24 hours, with meme coin driving gains for traders.
Tokens of major blockchains such as Solana’s SOL, BNB Chain’s BNB and Cardano’s ADA lost as much as 3% as traders likely took profits after a broader crypto rally last week. SOL pared gains after a nearly 70% jump in the past month, data shows.
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Meanwhile, XRP reversed gains after jumping 10% on Monday. Monday’s surge was prompted by Georgia and Dubai announcing they will use payment firm Ripple's services, which buoyed trader sentiment.
Some traders told CoinDesk that they expect bitcoin to play a key role as “digital gold” – a likening as a hedge to traditional markets offerings, such as stocks – as a possible price catalyst.
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“I think the general public’s education about the seriously difficult fiscal situation facing the United States is growing, along with a rising appreciation of bitcoin’s role as a hedge against this financial situation,” shared Banxa CEO Richard Mico in an email.
“The U.S. is now well over $33 trillion in debt, in addition to the unfunded liabilities of approximately $170 trillion. And, really, the only way out of this looming debt crisis is quantitative easing, or money printing, that will inevitably debase the dollar,” Mico said, adding bitcoin was poised to “be gold 2.0” amid such headwinds.
“There will be pullbacks and volatility more generally, but the setup for bitcoin and crypto as a whole is looking more and more auspicious,” Mico stated.
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
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Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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