Gold Value And Bitcoin Price Simultaenously Surge To Five-Month Highs
People often like to draw parallels between the price of gold and bitcoin. Cryptocurrency is often referred to as the digital gold rush, thus such a comparison makes some sense. What is even more astounding is how both the bitcoin price and gold value see significant price appreciations around the same time. Gold has surged to a five-month high, and bitcoin has been doing the exact same.
Looking at the gold and bitcoin price charts, it is not hard to see the correlations. The price of gold has spiked to its highest level in five months. In doing so, nearly 90% of all Post-Trump election losses have been recovered. A significant development, as it shows investors are flocking to safe haven assets once again.
Bitcoin Price and Gold Value Appreciate Once Again
At the same time, the price of bitcoin has been slowly recovering from its earlier losses as well. After reaching a new all-time high about five months ago, the value started plummeting. The rejection of the bitcoin ETF did not help matters all that much either. However, we are now close to a new all-time high, with the BTC price inching closer to US$1,200. It is quite interesting both assets see a similar appreciation at the same time.
It is not entirely surprising to see these trends materialize right now, though. The SP 500 is crashing hard right now as investors lose confidence. A lot of money is being pulled out of stocks once again. Investors look for new investment opportunities, which explains the bitcoin price increase. Gold always does well during times of financial volatility, thus that price will continue to inch upward as well. Diversification of an investment portfolio remains of the utmost importance, that much is evident.
When it comes to creating a crisis portfolio, gold will always be one of the first choices. However, it appears bitcoin is finding its way into investor portfolios as well. A few years ago, such a scenario seemed highly unlikely. Ever since Chinese exchanges got rid of leveraged margin trading, the bitcoin price has shown signs of stability. Bitcoin is maturing and provides more convenience than gold when it comes to transporting and using.
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