The correlation between Bitcoin and gold grows stronger even as these assets are forging new highs. Gold breached the $2000 level to log a new…
The correlation between Bitcoin and gold grows stronger even as these assets are forging new highs. Gold breached the $2000 level to log a new ATH, while Bitcoin is trading above $11,500 as well.
The stock markets, on the other hand, are led by tech companies as NASDAQ hits new highs, but again, is laid down by other equities. The NASDAQ index is trading 13% higher than the February 2020 levels, as Bitcoin and Gold are trading 24% and 21% higher, respectively. S&P, however, has been left behind with 9.2% gains.
Furthermore, Bitcoin’s recent movement alongside gold is further bullish,
The excessive stimulus from Governments all around the world has created massive liquidity for investors.
Investment analyst, Dan Tapiero stated the example of Canada where it’s debt has risen over 500% in the last few months. According to him, this is a blatant over-reaction. He tweeted,
Total panic by Bank of #Canada takes balance sheet up 500%!
Covid deaths only 9k out of 37mm population.
US #Fed balance sheet up less at 100%. #BoC overdid it.
Data now strong. CB panic was global. Massive excess global liquidity drives #Gold and #Bitcoin for years to come.
Hence, the economic slowdown continues to raise uncertainty around stocks, relatively favouring gold, silver and Bitcoin.
There also seems to be a weak indication of stimulus checks in the U.S. actually being driven towards crypto. The CEO of Coinbase, Brian Armstrong tweeted around mid-April,
Nevertheless, the gains on these assets including gold have been far from stable here. The devaluation of the US Dollar and the recession is promoting a flight from FIAT. However, questions around its sustainability at this point are not stupid. According to Ramp Capital CEO, a prominent financial analysis firm,
The people buying gold at $2,000/ounce are the same people who think pushing the close door button on an elevator actually works
Which asset do you think has a stronger influence on Bitcoin prices, Gold or Bitcoin? Please share your views with us.
To get the daily price analysis, Follow us on TradingView
On-chain data analytics provider Galssnode has come up with an interesting observation for ETH supply!…
Decentralized Finance (DeFi) is no-brainer the crypto ‘buzzword’ of 2020, this space has experienced tremendous…
Bakkt recently had witnessed a peak in the trading volume of physically-settled bitcoin futures on…
Business Intelligence Firm MicroStrategy created a massive buzz by announcing BTC purchase worth $425 million.…