Since it peaked this month, the value of gold has crashed by more than 8%. Within the same time, BTC has risen by more than 24%, showing an increase in a parabola form.
Major Signals
- US stock affected the price of gold
- BTC is a better investment in the long term
- The bitcoin market is more accessible than gold
There are two factors why the price of gold has been decreasing this month. Firstly, the possibility of a countrywide vaccine disbursement early next year has made the stocks to increase.
It is assumed that gold performs well when there's a crash in the financial sector. Thus, United States stocks' powerful momentum has played a significant part in the decline of gold value.
Secondly, there might be decreased interest in safe-haven investments regardless of inflation risks. New assets such as Bitcoin could serve as an inflation barrier; however, they also have the possibility for a considerable increase over the long term.
Stanley Druckenmiller stated that BTC is less of a liquid asset and has a slimmer market than gold.
However, due to the difference in the size of the market and liquid assets, traders do not need to own a bulk quantity of BTC to get proper exposure.
Will you choose Bitcoin over Gold? Let's discuss in the comments.
