Gold Has Reached A New Record: How Can This Affect The Price Of Bitcoin (BTC)?
Today, Gold has reached a historic high over the past 9 years and is decisively continuing to move to new heights. Paradoxically, it was cryptanalysts who greeted this news with great enthusiasm. Can a Gold victory turn into a triumph for Bitcoin?
Gold approaches $1800
While the cryptocurrency market is in a lethargic state, Gold has confidently reached the price peak over the past 9 years. Today, Gold is trading at $ 1,780. Financial experts predict that this is not the limit for the precious metal, and shortly we can see a rise in the price of Gold to the level of $1800 and above.
What became the driver for the increase in the price of Gold? Today, analysts unanimously say that this trend is directly related to the macroeconomic situation in the world. The new outbreaks of the pandemic, the second wave of mass infection, finally made it clear that for a long time the world economy will rake up the rubble and recover after COVID-19. Insider circles reported on the possible preparation of a new stimulus package by the US government.
The alarming dynamics became a signal for investors: most of them are actively dumping risky assets and are now investing in Gold. It is evidence by data from investment funds. This asset has repeatedly shown its resilience in the context of global economic crises.
Bitcoin is a “dark horse” in the financial market
The surge in investor interest in hedge assets such as Gold could successfully play in favor of Bitcoin. Adherents of a digital currency believe that these assets have much in common. In particular, the limited emission of an asset relates to such parameters. Gold is an exhaustible mineral, while the number of Bitcoins generated cannot exceed 21 million. Bitcoin emissions expect to stop until 2140.
The knowledge that a total of 21 million BTC will be released gives a great advantage to cryptocurrency over Gold. Supply reduction can positively affect the price of a crypto asset.
Experts positively assess the ability of Bitcoin to act as a hedge asset even despite its volatility. New rules of life that introduce due to the epidemic, such as social distance, contactless payment, further fueled interest in Bitcoin.
In these conditions, the competition between Gold and Bitcoin will intensify even more. Accordingly, Gold will need partially transformed to take its place in the digital world, where Bitcoin already feels its superiority.