• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
bitcoin gold crypto gold rush
Nexo

How “Picture Perfect” Macro Uncertainty Will Keep Gold, Bitcoin Trending

Tony Spilotro by Tony Spilotro
2 years ago
in Bitcoin
0
Advertisement

This week, the United States Senate introduced another stimulus package that would add more than $1 trillion to the Fed’s already ballooning balance sheet. In response, gold reached a new all-time high, and Bitcoin soared to $11,000.

It has created what one analyst calls a “perfect” macro-economic environment for hard, scarce assets like cryptocurrency and precious metals to grow. They also claim that this “picture” perfect scenario could last through the rest of the year.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Hedge Funds Are Cleaning Up On The Recent Gold Rush

The precious metals market is molten hot. Gold just set a new record, and silver has been surging. Even gold-related stocks have been on a tear, as the broader industry benefits from the burgeoning demand.

The demand is in response to investors seeking a safe haven asset and hedge against the inflation that is expected as a result of the current monetary policy.

Chief currency analyst at broker HYCM Giles Coghlan says the “case for gold upside is literally perfect at the moment,” due to “quantitative easing,” the “low-interest-rate environment,” and “equities giving a poor return.”

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

RELATED READING | XAUUSD CHART SHOWS WHY BITCOIN IS THE FASTEST HORSE IN RACE AGAINST INFLATION

Several precious-metal-based hedge funds have had exceptional performance over the last quarter, earnings reports reveal. Chicago-based metals and cryptocurrency hedge fund Typhon Capital Management saw an increase of between 6 and 7%.

Delbrook Capital’s Delbrook Resource Opportunities Master Fund is up nearly 20% month over month for three months running a row. The fund’s founder, Matt Zabloski, says that precious metals are likely to continue to climb through the end of 2020 “thanks to the continued uncertainty of the macro picture and the US election.”

bitcoin gold btcusd xauusd

BTCUSD Versus XAUUSD Correlation Comparison | Source: TradingView

Macro-Economic Uncertainty Could Keep Bitcoin And Metals Trending

The same reasons behind the recent gold rush have also begun to drive investors toward Bitcoin and other cryptocurrencies.

Bitcoin is often called digital gold and shares several attributes with the precious metal. Among the most valuable similarities with gold is the asset’s hard-coded digital scarcity. Only 21 million BTC will ever exist, and while gold’s supply is finite, there’s no telling for certain how much is left to be unearthed.

The gold market cap is over $11 trillion, according to a new report on Bitcoin from Fidelity Investments. The cryptocurrency’s current market cap represents just over a 1% share of gold’s massive capitalization.

RELATED READING | GOLD SETS RECORD HIGH AHEAD OF SECOND US STIMULUS, WILL BITCOIN FOLLOW?

Investors are only recently becoming wise to Bitcoin’s potential as a store of wealth and safe haven, similar to what the precious metal offers. If Bitcoin could absorb even just 10% of the current gold market cap, it would result in a price per BTC of $50,000.

The same $1.1 trillion more in XAU, would only result in roughly a $200 increase, while Bitcoin would grow by $40,000 per coin.

The more investors realize that Bitcoin is the fastest racehorse in the race against inflation, the more likely the cryptocurrency will outperform the precious metal from here on out.

Featured image from Deposit Photos.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Tony Spilotro

Tony Spilotro

I'm Tony Spilotro. Behind the pseudonym, I'm a digital media executive and global remote work leader with a decade of content experience and excellence. Here, I explore my newfound passions pertaining to privacy, finance, economics, politics, cryptography, property rights, and other libertarian-esque views. I am a Bitcoin evangelist, maximalist, and educator whenever I can be, helping to spread its message of freedom from government control, monetary policy mismanagement, and passing the buck - literally – to future generations. My journey from a curious retail crypto investor to a serious Bitcoin advocate, trader, and technical analyst is an unusual one, but life-changing nonetheless and has become less about money and more about a long-overdue revolution. While a firm believer in the laws governing math and science, I am profoundly fascinated by the impact of astrology and astronomy including moon and solar cycles and planetary alignment and their ability to influence and potentially predict markets. It hasn't yet clicked for me as to how to put anything to use, but I consider it my current rabbit hole I can't yet dig out of. My perspective of growing up alongside the internet, the dot com era, the Great Recession, and roots in video games collecting coins and rare items caused Bitcoin to immediately make sense to me. Through all of these lenses, I seek to produce content that is educational and entertaining, and I thank you sincerely for taking the time to read what I have to say. Please follow me on Twitter and feel free to drop me a line if you would like to work together.

Related Posts

short bitcoin

Inverse Bitcoin ETF Sees 300% Increase In Short Interest

5 hours ago
Bitcoin

Bitcoin Bear Market Sends On-Chain Metrics Into Sideways Trend

9 hours ago
bitcoin addresses

Decline In Bitcoin Active Addresses Suggests Market Is Purging Paperhands

11 hours ago
South African Firm Raises $150 Million To Introduce Crypto Water Tokens Dubbed H2ON

South African Firm Raises $150 Million To Introduce Crypto Water Tokens Dubbed H2ON

20 hours ago
Jordan Belfort

Jordan Belfort, The ‘Wolf Of Wall Street,’ Advises: Buy Bitcoin Today And Make Money

21 hours ago
Bitcoin

Bitcoin Saw Largest Ever Monthly Withdrawal From Exchanges In June

1 day ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.