• About Us
  • Privacy Policy
  • Contact Us
Subscribe
Lascena
Advertisement
  • Home
  • Bitcoin
  • Cryptocurrency
    • Altcoin
    • Litecoin
    • Ethereum
  • Blockchain
  • Regulation
  • Market
  • Prices 2021LIVE
  • Videos
No Result
View All Result
  • Home
  • Bitcoin
  • Cryptocurrency
    • Altcoin
    • Litecoin
    • Ethereum
  • Blockchain
  • Regulation
  • Market
  • Prices 2021LIVE
  • Videos
No Result
View All Result
Lascena
No Result
View All Result

Gold Undergoes $2tn Market Wipe-off against Booming Bitcoin; Coincident?

December 1, 2020
in Bitcoin
Reading Time: 4min read
Gold Undergoes $2tn Market Wipe-off against Booming Bitcoin; Coincident?



The last four months saw gold trimming its market valuation by $4 trillion. Conversely, Bitcoin added about $180 billion within the same period.

Both gold and bitcoin were the benefactors of aggressive monetary easing policies launched by the Federal Reserve. The precious metal reached its record high of $2,075.82 an ounce on August 7, 2020. But it failed to hold the top. A profit-selling wave arrived and corrected the XAU/USD price by as much as 14.97 percent.

On the other hand, Bitcoin experienced its share of local sell-offs but continued rallying upward nonetheless. On December 1, 2020, the flagship cryptocurrency established a new record high at $19,873 a token (data from Coinbase). The move uphill served as a reminder of earlier studies that showed a lagging positive correlation between gold and Bitcoin.

Bitcoin is up more than 400 percent since March 2020. Source: BTCUSD on TradingView.com

So does that mean Bitcoin, too, would meet the same fate as gold did after setting its all-time high? The opinions differ.

The Store of Value Upgrade

According to JP Morgan Chase & Co, family offices are actively selling their gold-based exchange-traded funds to seek exposure in cryptocurrencies. So far, they have sold 93 tons of precious metal worth around $5 billion. At the same time, capital inflow into Grayscale Bitcoin Trust has surged twofold.

Bitcoin’s shot to a record just as billions of institutional dollars have fled gold, sparking an intense debate on Wall Street.https://t.co/3E0rfyfO8j by @Edspencive & @helloiamyvonne pic.twitter.com/bnqBRLaHap

— Tracy Alloway (@tracyalloway) December 1, 2020

The study makes gold and Bitcoin looks like competing assets. It means investors would more likely upgrade their store of value from physical to digital, thus taking away a good portion of capital from the so-called outdated markets. Dan Tapeiro, a macro investor with exposure to both gold and Bitcoin, said it is possible.

“$2 trillion dollars of gold value wiped away in the past 4 months,” he explained. “No, it didn’t all go into Bitcoin which has added $180 billion in the same period but a 10% capture rate would still be impressive.”

Charlie Morris, chief investment officer at ByteTree Asset Management, also thinks money has moved from gold markets to Bitcoin’s. Nevertheless, he also reminded that platinum — a commodity rival — has also fared upwards in recent sessions, providing more than one alternative to the yellow metal.

“The gold market was pretty hot this summer, so it’s not surprising to see the price slip back a bit heading into year-end,” Mr. Morris explained. “Some money has pulled out of gold, maybe it has gone into platinum because of the green movement, and obviously some of it has gone into bitcoin, cause all this excitement.”

Bitcoin Correction Woes

A week ago, Bitcoinist published an article titled, “Bitcoin’s Lagging Correlation with Gold could Push Price to $25K.” It discussed how the cryptocurrency is mirroring gold traders but with a delay.

Meanwhile, the BTC/USD exchange rate also took cues from certain technical fractals that showed it would test $25,000 before pulling back lower as gold did after the August high.

gold, Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin-Gold correlation since September 2018 (as of last week). Source: BTCUSD on TradingView

As the chart above shows, Bitcoin’s correlation with gold shows it would extend its uptrend towards the 1.138 Fibonacci level. Now, all the analysts mentioned above think gold could rebound. It means Bitcoin could do the same despite undergoing a massive downside correction.

“Bitcoin and gold are both on the right side of the inflation trade,” Mr. Morris said. “They are both assets that will protect investors from the massive fiat currency debasement trade that is coming.”





Source link

Facebook0
Twitter0
Linkedin0
Print0
E-mail0
Yahoo Mail0
GMail0
SMS0
Messenger0
Tags: 2tnBitcoinBoomingCoincidentGoldMarketUndergoesWipeoff
Next Post
Trojan Virus Discovered That Steals Password Data from Crypto Wallets

Trojan Virus Discovered That Steals Password Data from Crypto Wallets

First Mover: You Call That a Record? Bitcoin’s November Gains Are 3x Stock Market’s

First Mover: You Call That a Record? Bitcoin's November Gains Are 3x Stock Market's

Please login to join discussion

Don't Miss

Bitcoin Support at $47K “Very Strong,” Glassnode CTO Asserts After Price Falls
Bitcoin

Bitcoin Support at $47K “Very Strong,” Glassnode CTO Asserts After Price Falls

by Lascena Cryptocurrency News Education
March 5, 2021
0

Bitcoin has an extreme potential to hold $47,000 as its support level, according to Rafael Schultze-Kraft, the co-founder/CTO of...

Read more
Powell Comments Leaves Bitcoin Market Sour; Bearish Assault Ahead?

Powell Comments Leaves Bitcoin Market Sour; Bearish Assault Ahead?

March 5, 2021
BREAKING! TRUMP Pumps BITCOIN Over $10,000 as Protests Rage Across America – June 2020 Crypto News

BREAKING! TRUMP Pumps BITCOIN Over $10,000 as Protests Rage Across America – June 2020 Crypto News

March 5, 2021
Ripple XRP “Watch in the Next 24 hrs, People Need To Know This!” Robert Kiyosaki

Ripple XRP “Watch in the Next 24 hrs, People Need To Know This!” Robert Kiyosaki

March 5, 2021
BREAKING: The US JUST Made LARGEST Cryptocurrency Announcement in History!! | Cryptocurrency News

BREAKING: The US JUST Made LARGEST Cryptocurrency Announcement in History!! | Cryptocurrency News

March 5, 2021

Lascena Cryptocurrency News Education

We have all the latest updated and legitimate information related to Blockchain, Cryptocurrency, latest market rates & trends, prices, new regulations along with every other thing that somehow related to crypto or digital currency market. Our main idea is to provide the kind of news that is original and at the same time, it can prove to be beneficial for our audience.

© 2020 lascena.ca

  • About Us
  • Privacy Policy
  • Contact Us
No Result
View All Result
  • Home
  • Bitcoin
  • Cryptocurrency
    • Altcoin
    • Litecoin
    • Ethereum
  • Blockchain
  • Regulation
  • Market
  • Prices 2021
  • Videos

© 2020 lascena.ca

  • bitcoinBitcoin(BTC)$47,063.00-4.53%
  • ethereumEthereum(ETH)$1,473.01-5.34%
  • tetherTether(USDT)$1.010.28%
  • cardanoCardano(ADA)$1.13-5.62%
  • Binance CoinBinance Coin(BNB)$221.71-7.63%
  • PolkadotPolkadot(DOT)$32.75-9.90%
  • rippleXRP(XRP)$0.4560510.79%
  • litecoinLitecoin(LTC)$173.09-6.62%
  • chainlinkChainlink(LINK)$26.44-9.03%
  • bitcoin-cashBitcoin Cash(BCH)$482.08-7.12%