Bitcoin ETFs have seen inflows exceeding $3 billion within five trading days, marking a significant contrast to gold ETFs, which have suffered an outflow of $1 billion. This trend has led to a $4 billion gap between the two, the largest since the 2020 U.S. presidential election. Analysts, including Geoffrey Kendrick from Standard Chartered, assert that Bitcoin is viewed as a better hedge against strategic asset reallocation, particularly as U.S. Treasury yields rise and demand for U.S. assets declines. Predictions indicate Bitcoin is on track to reach new heights, with targets of $120,000 by the end of the second quarter and possibly $200,000 by year-end. The increasing inflows into Bitcoin ETFs correlate with a decrease in long-term demand for U.S. Treasuries and a shift in investment strategies away from gold. As geopolitical and economic concerns continue, many investors see Bitcoin, due to its decentralized nature, as a superior safeguard in contrast to traditional assets like gold which are largely used for geopolitical hedging. Overall, Bitcoin's momentum may persist, bolstered by ongoing concerns regarding U.S. economic policies and market dynamics.

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