OPINION: Trump's Plan to Audit Gold Reserves May Drive Money Flows to BTC
Trump's move to plan an audit of the US gold reserves at Fort Knox could trigger a sweeping review of gold holdings or drive investors to Bitcoin, according to Fadi Aboualfa, head of research at Copper, The Block reports. If gold ETFs fail to validate their full backing, they could trade at a discount, triggering a global liquidity drain.
Aboualfa points to a potential price disconnect between the spot market and unallocated gold ETFs as delivery delays increase as US banks move gold from London to New York. Given that the paper gold market is 133 times larger than the physical supply, this scenario may trigger a global liquidity disturbance with implications for the bitcoin market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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