Gold Skyrockets as Bitcoin Price Plummets, Which Wins Battle for Economic Hedge?

Bitcoin price in recent days has started a long-overdue correction following a powerful multi-month, parabolic rally that took the price of the crypto asset from a trading range between $3,000 and $4,000, to local highs of over $9,000.

But as the cryptocurrency dubbed as digital golds bullish momentum begins to fade, the price of Gold has begun to climb closer to reaching multi-year highs in the face of mounting fears over an impending global economic storm on the horizon.

Bitcoin Price Drops Just as Gold Bull Breakout Begins

In recent weeks, Golds reign as the preferred hedge asset during economic downswings was given its first real run for its money. As concerns grow surrounding the continued trade war between the USA and China, and the effect the two superpowers might have on the greater global economy.

Related Reading | Tech Stocks, Gold, Oil, and S&P 500: Bitcoin ROI Beats Them All

As investors in the stock market and other traditional markets seek to de-risk and protect capital from the potential crash many financial analysts are predicting, safe-haven assets such as Gold are typically increasingly held as a hedge.

However, a recent #DropGold television marketing campaign from Grayscale Investments and a corresponding parabolic surge in Bitcoin price following a bear market was set to challenge golds historic use as a hedge.

Thats all changed this week, as Bitcoin price has finally begun to correct after a break of the parabolic rally that signaled the end of the bear market. At the same time, Gold, the safe-haven asset that investors look to to protect capital, has finally started to grow in value once again.

According to eToro analyst Mati Greenspan, Gold is skyrocketing and close to reaching multi-year highs. Meanwhile, Bitcoin, has struggled to maintain its price at $8,000 after being rejected at $9,000, and is currently trading at $7,600.

Investors Urged to #DropGold for BTC, But is the Opposite Happening?

With Gold picking up momentum while Bitcoins wanes, the effectiveness of Grayscales marketing efforts must be called into question.

Investors arent dropping Gold, as the campaign suggests. In fact, the opposite may be happening as crypto investors have increasingly become exposed to Gold as an opportunity for portfolio diversification. Greenspans own eToro offers CFD contracts for Gold, and recently Bitcoin-based margin trading platform PrimeXBT added spot contracts for Gold and Silver as part of an expansion into forex, commodities, and more, as demand among crypto investors rises.

Even prominent crypto influencers on Twitter have begun talking about the precious metal amidst normal cryptocurrency market analysis and discussion.

Worst yet, businesses offering investors of precious metals exposure to cryptocurrencies have begun to pull back on that offering, further suggesting that Gold investors simply arent interested in Bitcoin, while Bitcoin investors may very well be interested in the Digital Golds physical counterpart.

Related Reading | Flipping Gold is Inevitable In Digital Age, Would Take Bitcoin Price to $350,000

The two assets rightfully draw many comparisons they both have a finite supply thats mined, and can be used as both a means of exchange and store of value. Oftentimes, the comparison sparks debate as to if Bitcoin could potentially flip the market cap of Gold, which would take the price of Bitcoin to over $350,000 per BTC.

The post Gold Skyrockets as Bitcoin Price Plummets, Which Wins Battle for Economic Hedge? appeared first on NewsBTC.

05.06.2019 / 19:00 66
Flipping Gold is Inevitable In Digital Age, Would Take Bitcoin Price to $350,000 Flipping Gold is Inevitable In
In recent weeks, as Bitcoin priceskyrockets, interest in the crypto market has been revived once again. And with it, so has the digital gold moniker
Bitcoin Price Chart Shows How Surpassing Golds Market Cap Is Easily Feasible Bitcoin Price Chart Shows How
Bitcoin, to many, is the digital equivalent of gold one of the worlds first ever currencies, means of exchange, and stores of value. According to
Why Goldman Sachs Predicts Gold Will Climb 10% to $1,425 Why Goldman Sachs Predicts Gold Will
Goldman Sachs has predicted that the price of gold will rise this year driven by fears of slowing economic growth, according to CNBC. In the next
Gold Demand Rising: Investors Turn to Precious Metal as Safe Haven Asset Gold Demand Rising: Investors Turn to
Recent global economic concerns and stock market volatility seem to have increased demand for gold as a safe haven asset. The price of the precious
Novogratz: Interest Left Crypto for Macro, But Bitcoin Will Emerge As Store of Value Novogratz: Interest Left Crypto for
Outspoken Bitcoin bull and founder of the cryptocurrency-focused Galaxy Digital, Mike Novogratz, believes that investor interest in cryptocurrencies
Is Golds Position as a Safe Haven Asset Slipping in Favour of Bitcoin? Is Golds Position as a Safe Haven
Global demand for gold appears to be dropping according to figures published by the World Gold Council earlier today. The asset had its weakest
Comments (0)
Add a comment
Comment on