Bitcoin's Rise Vs. Gold: Size, Financialization, and Momentum

Bitcoin's significant percentage move compared to gold is partly due to its smaller asset base, making it more susceptible to capital inflows. Unlike gold, Bitcoin lacks the financialization present in gold markets, making it less sensitive to historical factors. Additionally, Bitcoin's momentum attracts Western investors who tend to chase performance, leading to further price appreciation. This rise is also influenced by generational shifts and cultural behaviors, where investors gravitate towards assets with faster price appreciation. Therefore, Bitcoin's growth is driven by its size, lower financialization, momentum, and investor behavior.