• Sun. Aug 14th, 2022

Gold and Bitcoin: Different Stores of Valuable Assets

ByHazel R. Lang

Jul 31, 2022

In recent weeks, gold and Bitcoin have reversed their trends, return to attract capital.

Interest in Gold and Bitcoin Returns

Investors bet on gold and Bitcoin again

Over the past month, Gold and Bitcoin have been strengthen an uptrend despite the departure of different paths.

Over the last 6/7 months, the yellow metal and the digital currency, despite common characteristics that make them by nature safe havens, have not performed as expected and have not lived up to this status.

The scarcity in numbers, their intrinsic value and the role they have carved out for themselves in the world of finance and beyond should have driven them up in value, but physical gold in particular has not performed well at all. , suffering from a stall at around $1400/$1500 price.

Over the past two weeks, however, due to the lingering crisis, difficulties in finding raw materials, the unwinding of a technical recession and the latest movements in terms of the fedpositively influenced the reactivation of his path.

Gold is currently hovering around $1,700 and futures are slightly more positive than in the past, showing an opening in the market.

A similar, but slightly better story is that of Bitcoin, which, despite most analysts’ estimates, did not break above $18,000 and fall to the expected levels of $15,000 or $8,000 depending on the most pessimistic forecast.

BTC has always floated around $20,000 and then benefited from a mini-positive trend over the past two weeks to date.

Bitcoin’s current price is currently at $23,000 and is targeting $24,000, which is the first leg of the downtrend.

If so, some analysts are giving it $26,000 to $30,000 by the end of October with goodwill for those who dropped out.

The yellow metal and the queen of cryptocurrencies are once again attracting large amounts of capital and this can also be seen in the trading volume.

The usefulness of safe havens

To protect your capital, it is certainly essential to invest part of the portfolio in one or more safe-haven assets.

This is all the more important at a time when, like this year, inflation is skyrocketing and when the countermeasures taken by central banks are not yet having the expected effects.

The situation seems to be back to “normal”, even more so with the macro situation we are currently experiencing, which seems far from its peak despite the fact that the GDP figure improved to 0.9 from 1.6 last trimester.

In short, time has proven Mike NovogratzCEO of Galaxy Digital, right, who told CNBC:

“We had a huge deleveraging and I believe most of that reduction is now out of the system.”

Meanwhile, Ethereum is also shifting gears back to $1,600/1,700, helped by the announcement of the merger that will tentatively take place in September.

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