Share this article
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.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
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.
“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.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Bitcoin eyes longest daily winning streak in 3 months
Bitcoin rose over 1% during Monday's Asian trading session, marking a potential five-day winning streak.
What to know:
- Bitcoin rose over 1% during Monday's Asian trading session, marking a potential five-day winning streak.
- The broader crypto market, including major cryptocurrencies like XRP, solana, and ether, also saw gains of up to 1%.
- Tax-loss selling has subsided, one analyst said explaining the upswing, while others attributed the uptick to haven demand.
Top Stories
