Bitcoin and gold hit record highs as jittery investors rush to haven assets

The price of both bitcoin and gold hit a record high yesterday, in a surge driven by a range of factors including investor flight to haven assets.

- Nick Robins-Early Alex Lawson

Bitcoin surpassed its previous high-water mark of just under $69,000 (£54,000) set in November 2021, capping a long rally that has increased its value by 190% over the past year.

The rise was short-lived, however, and the cryptocurrency almost immediately eased back sharply, falling back below its opening price of about $66,000.

Meanwhile the spot price of gold reached a record $2,141.59 for an ounce, beating the previous record of $2,135 in December, before it also eased back to about $2,130.

The rush into the "safe haven" asset was in part driven by growing investor jitters over tensions in the Middle East as well as speculation that US interest rates will be cut by the summer.

The US Federal Reserve is increasingly expected to cut interest rates - now at 23-year highs - in June.

Reductions in borrowing costs typically push gold higher because it does not offer any interest.