In recent weeks, there has been a rather spectacular Bitcoin price really. It is not uncommon for this to happen, yet this run seems to have some legs to it. This makes a lot of people wonder if gold will follow a similar trend soon.
Bitcoin Engages the Pumps Again
Even though Bitcoin has seen plenty of hardship in 2020, it remains one of the more resilient assets. Following a steep price decline in recent years, it now trades near $15,000 again. Rather remarkable, as it was valued at under $4,000 in March of this year. Gold, on the other hand, has started to surge as well this year, but in less spectacular fashion.
The main question is whether or not Bitcoin can keep going. No one wants to see this trend come to an end in the near future. Gaining thousands of dollars in value in weeks is not necessarily sustainable either, though. For the time being, the uptrend seems to remain in place, despite some push back as of right now.
It doesn’t happen all that often people consider Bitcoin’s momentum to be a gold price indicator. In fact, it clearly isn’t a tool in that regard. At the same time, there is something to be said for the price correlation of both assets. Both gold and Bitcoin tend to perform well at the same time, in most cases.
One thing is certain: all alternative investments will benefit from macroeconomic events. Current stimulus packages and financial instability are clearly catalysts for a change of pace. This can prove beneficial to “safe haven assets”, a term that includes both gold and Bitcoin.
A Big Move Will Take Time
One key difference between these two assets is how gold is a lot more established than Bitcoin. More specifically, it has been around for much longer than the world’s leading cryptocurrency. As such, it will also take a lot more time before it can note a big push. One such event has already taken place in the past 18 months, and it took several decades to materialize.
All of this makes it very difficult to determine what will happen next. Gold and Bitcoin are still primarily considered to be a store of wealth. In these uncertain times, that alone is enough to attract investor attention. Effectively moving these markets in either direction, however, is a different matter altogether. There is room for cautious optimism where both assets are concerned.
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