Gold and Bitcoin: different store of values
In recent weeks, both gold and Bitcoin have reversed their trends, back to attract capital.
Interest in gold and Bitcoin is returning
Over the past month, gold and Bitcoin have been reinforces a bullish trend despite starting from different paths.
Over the past 6/7 months, the yellow metal and the digital currency, despite having common characteristics that make them inherently safe haven assets, have not performed as expected and have not lived up to this status.
Scarcity in numbers, their intrinsic value and the role they have acquired in the financial world and beyond should have caused them to rise in value, but physical gold in particular has not performed well at all, suffers from a stall around $1400/$1500 in price.
During the last two weeks, due to the ongoing crisis, difficulties in finding raw materials, the decline in a technical recession and the latest movements in terms of prices from Fedhas positively influenced the reactivation of the track.
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 somewhat better story is Bitcoin, which, despite the estimates of most analysts, did not break through the $18,000 barrier and did not go down to the expected levels of $15,000 or $8,000 according to the most pessimistic forecasts.
BTC has been moving around $20,000 all along and has subsequently benefited from a mini-positive trend in the last two weeks to date.
Bitcoin’s current price at the moment is $23,000 and is aiming for $24,000, which is the first step away from the bearish trend.
If that’s the case, some analysts put it at between $26,000 and $30,000 by the end of October with goodwill for those who have left the project.
Both the yellow metal and the queen of cryptocurrencies are again attracting large amounts of capital, and this is also seen in the trading volume.
The benefit of safe harbor assets
To protect one’s capital, it is absolutely essential to place part of the portfolio in one or more safe haven assets.
This is more important at a time when, as this year, inflation is skyrocketing and the countermeasures the central banks have implemented are not yet having the desired effects.
The situation seems to have returned to “normal”, more so with the macro situation we are experiencing now, which seems far from peak despite the GDP figure improving to 0.9 from 1.6 last quarter.
In short, the time has shown Mike NovogratzCEO of Galaxy Digital, right, who at the microphones of CNBC had said:
“We have had a huge deleveraging and I think most of this reduction is now out of the system.”
Meanwhile, Ethereum is also shifting gears and returning to $1,600/1,700, helped by news of the merger that will take place in September.
