The total market capitalization of Bitcoin [BTC] is around $150 billion. This is significantly small when compared to the market capitalization of the equity or commodity markets. Gold’s estimated market capitalization is about $8.5 trillion.
Peter Boockvar from Bleakley Advisory Group treats Bitcoin [BTC] as a market signal rather than an asset. He acknowledged the gains in the Bitcoin over the past couple of weeks; thinks that it was prominent for global currency and commodity markets.
The surge in Bitcoin prices signaled a momentum shift as traders are looking to hedge their investments as global economic tension is increasing. However, he doesn’t yet see Bitcoin as a haven or even an asset. He said in an interview with the CNBC,
“I don’t recommend Bitcoin either up or down. I don’t really care for it in terms of an asset. I do care for it as a signaling mechanism…I don’t know to be honest. It’s still in its’ infancy.”
Gold has experienced an eight-year-long bear market and has been rejected above $1300 every time in the past last eight years. However, if the US Federal Governments decide to lower the interest rates further, which is highly probable shortly, the dollar will be weakened, which could again enhance the price of Gold.
Nevertheless, Anthony Grisanti seems to think otherwise. According to him, due to Bitcoin’s emerging nature, growing implementation, and globally feasible nature, it has a higher chance of going up. He said,
I am taking the modern currency versus the medival currency. The transactions have speeded up, also the number of transactions has speeded up… Wider implementation of Bitcoin. Hedge funds are back in to buying this thing.” He also added, “Bitcoin is not related to the US dollar. The dollar can make its move and Bitcoin can make its move; separate of the dollar.”
According to his analysis, a buy order at $7800 is looking for targets at $9100. However, stop loss must be placed near $7100. Grisanti reiterated that people are working so that Bitcoin payments will enable purchasing of a Whopper at Burger King! Soon. However, Gold has been limited in its demand due to feasibility issues.
Jim Luorio, on the other hand, took a bearish stance. He said,
“I think its gonna take a lot to push above $10000. Right now I clearly rather be in Gold”
The price of Bitcoin Futures at 7: 45 hours UTC on 5th June 2019 is $7810.
Which side are you on, Gold or Bitcoin? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com