Bitcoin and Gold are making hefty moves as investments in these safe havens continue to grow. While Gold is testing its 6-year high price near $1350, Bitcoin also moved higher towards $150 billion Mcap.
The rise in price in both these assets can be attributed to the recent economic turmoil that is gripping the economy from the Middle East, Europe, and due to the escalation between US-China trade war. The financial circumstances also point towards a rate cut by the Federal reserves in the US. Ross Norman, chief executive at bullion dealer Sharps Pixley, told the media,
“In people’s minds, there is a sense of a deeply darkening macroeconomic backdrop, in particular, the likelihood that the U.S. will drop interest rates quite soon,”
U.S. gold futures climbed 1% to $1,356.9 an ounce, while the spot price increased by about 0.9% on a weekly scale.
Bitcoin broke above $8450 which confirmed another solid move above $8000 as Bitcoin was looking to break below $7000 a couple of weeks ago. The most feasible way for institutional investors to invest in Bitcoins is through Futures contracts on regulated Exchanges and Institutional custody platforms.
There has been consistent growth in the volume of trades on crypto-based derivates all-around the world. Moreover, the near launch of Bakkt in a couple of months will also act as a significant catalyst for big movements in price.
The price of Bitcoin at 14: 45 hours UTC on 14th June 2019 is $8407. It is trading 3.08% higher on a daily scale.
‘Correlation does not mean causation,’ a term that reasonably popular among the economic circles. Hence, while most people presumed that for one store of value to rise, the other has to fail drastically. However, both the assets seem to have their specific interest seekers. Meltem Demirors, analyst and Founder of Coinshare Research echoes these sentiments in her tweet,
do bitcoin next https://t.co/omSznaIcaL
— Meltem Demirors (@Melt_Dem) June 14, 2019
Which asset do you think will outperform the other: 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