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Bitcoin Price Rises 3% as Gold Trades Above $2K for First Time

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2 months ago

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  1. Bitcoin Price Rises 3% as Gold Trades Above $2K for First Time

BTC/GOLD

 

Bitcoin is again acting like a macro asset, drawing bids amid a record rally in gold and a broad-based sell-off in the U.S. dollar.

  • At the time of writing, the cryptocurrency is trading at $11,624.63, representing a 3% gain on the day, according to CoinDesk’s Bitcoin Price Index.
  • Gold is trading at a record high of $2,040 per ounce, having surpassed the $2,000 mark on Tuesday.
  • Investors are flocking to gold on sinking inflation-adjusted bond yields and a weaker U.S. dollar,  macro analyst Holger Zschaepitz.
  • The U.S. 10-year bond, when adjusted for inflation, currently offers a yield of -1%.
  • The dollar index, which tracks the value of the greenback against majors, recently reached a 26-month low of 92.55, according to data source TradingView.
  • Gold and bitcoin exchange-traded funds have seen strong inflows over the past five months on the growing demand for an “alternative” currency, according to JPMorgan Chase & Co.
  • Bitcoin and gold have recently rallied in tandem with the dollar losing ground across the board.
  • As gold rose from $1,800 to $1,980 in the 11 days to July 28, bitcoin jumped from $9,100 to $12,100 and the U.S. dollar took a beating against other fiat currencies.
  • As such, some analysts  that bitcoin is now more of a macro asset, meaning it responds to large-scale events in the world’s economies.
  • Gold and bitcoin  as governments and central banks are unlikely to slow or halt liquidity-boosting programs launched this year to counter the coronavirus-induced recession.
  • Bitcoin may see stronger gains in the future, as it looks relatively cheap with prices still down 43% from the record high of $20,000 reached in December 2017.
  • The cryptocurrency has gained nearly 60% so far this year, while gold has risen by 34%.

..iCoQuet..

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