Bitcoin the “digital gold” is driven by bulls, having crossed $8,000 and eyeing $10,000. Meanwhile, the Gold price just hit its 1 year low last week and is currently being heavily bearish as dollar strengthens, interest rate surges, sell-off continues, and gold held by ETFs decline.
Bitcoin the “Digital Gold” gaining strength & bulls
Gold might be fighting with the bears, but the “digital gold” Bitcoin is having a bull rally as it surges above $8,000 price level. Last week, Gold hit its 1 year lowest while Bitcoin is up over 42 percent since its June-lowest. Bitcoin has been becoming a preferred choice of millennials over gold. Recently, Apple co-founder Steve Wozniak also stated that Bitcoin is the only Digital Gold.
At the time of writing, Bitcoin has been trading at $8,172 with a 24-hour price rise of about 6 percent.
Since May, this is the first time Bitcoin hit the $8k mark. A number of positive news in terms of institutional investors’ interest such as Blackrock and Goldman Sachs and regulatory positive sentiments as declared by FSB that cryptocurrencies are not a threat to the global financial system have driven the prices up.
The bulls are finally back in the town. Bitcoin’s highest point today has been $8,360. Now, the investors are all looking ahead for the prices to hit the next major high point at $10,000.
Meanwhile, Gold position weakens as the dollar strengthens
Last week, Gold has been at its 12-months low. Right now, it is hovering near $1,220, having plunged from April’s $1,365. On a short-term basis, Gold remains to be bullish.
The position of the gold weakened and its prices plunged on Tuesday as dollar steadied. In anticipation of the continued rising interest rates by the Federal Reserve further drove dollar slightly up. Moreover, there has been a sell-off by speculative investors along with a decline in gold held by exchange-traded funds (ETF).
However, the current movement in the price of gold seems to be driven technically. The reason being Trump’s support for a weak dollar that seems to make investors turn away from the dollar. Apart from gold, the world stock market has been also in the lower as President Trump tweeted a warning to Iran that any country would suffer grave consequences that would threaten the US.
To Iranian President Rouhani: NEVER, EVER THREATEN THE UNITED STATES AGAIN OR YOU WILL SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE. WE ARE NO LONGER A COUNTRY THAT WILL STAND FOR YOUR DEMENTED WORDS OF VIOLENCE & DEATH. BE CAUTIOUS!
— Donald J. Trump (@realDonaldTrump) July 23, 2018
Though, if the dollar weakens, gold has a scope to go higher, the medium to long-term outlook of the yellow metal currently remains downward tilted.
However, the factors that drive dollar up seems to stand firm in the recent time and that puts gold in trouble. So, for right now, the daily chart of gold is heavily bearish that is giving off a warning to investors.
So, gold is having a bearish day and seems will continue on the same trend for now while bitcoin the “digital gold” is registering significant gains and expected to hit new highs.