Gold bleeds in favor of Bitcoin as the benchmark cryptocurrency reaches an all-time high with Wall Street investors abandoning the precious metal. In today’s Bitcoin news, we are taking a closer look at the analysis.
Bitcoin’s record-breaking performance is now fuelled by money that was traditionally held in gold as more than $5 billion worth of precious metal was dropped from investment funds. Wall Street is now showing signs of recovery with the COVID-vaccine nearing. Bitcoin was seen by some as crypto’s answer to gold. Others found Bitcoin’s behavior was correlated with the previous metal but since the world’s biggest cryptocurrency surpassed the previous all-time high a day ago and BTC and gold were seen less as bedfellows and more as a potential adversary. According to the analysis on the precious metal market by JPMorgan Chase, about 93 tons of precious metals were dumped by billion-backed funds that were worth $5 billion since November 6.
Bitcoin's shot to a record just as billions of institutional dollars have fled gold, sparking an intense debate on Wall Street.https://t.co/3E0rfyfO8j by @Edspencive & @helloiamyvonne pic.twitter.com/bnqBRLaHap
— Tracy Alloway (@tracyalloway) December 1, 2020
In the meantime, Grayscale’s Bitcoin trust doubled since the start of August but Grayscale has been hovering up all the BTC that it can get its hands on this week only and added another 7300 BTC worth $140 million to the coffers. Jean-Marc Bonnenfous, former commodities hedge fund manager turned crypto investor said:
“Gold was really the safe asset of the past world and baby boomer generation. Now it’s being replaced by automated assets like Bitcoin.”
The 2020 Bitcoin boom was characterized by a growing list of Wall Street converts and most recently, BlackRock Chief Investment Officer for Fixed Income Rick Reider said that the currency is here to stay and that is more functional than passing a bar of gold around. Bitcoin will not replace gold but there’s room for both especially if the future is inflationary and there are extreme debt levels. Even George Soros’ ex-money man believes that Bitcoin is an investment vehicle like others.
It would crazy to think that the $5 billion less gold sitting in investment funds was transferred into BTC. If this is the case, BTC’s price will be up in ,000.
buy sildalis generic buy sildalis online no prescription
Instead, most of the money was moved into stocks which are recovering in light of the COVID vaccine that is looming on the horizon. Gold’s position seen as a safe haven traditionally dwindles once stock market prices are increasing. How long will gold be safe? Well, that’s a good question since gold bleeds in favor of BTC. Speaking of stock markets, things are looking better across US and Europe. The EU Stoxx 600 index increased by 0.3%, FTSE 100 opened at $0.5% higher.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post