- Due to the ongoing pandemic situation around the world, there has been a massive upsurge seen in the price of gold.
- Certain speculators find Bitcoin will be backed by the same factors in the near future.
- A spokesperson from Goldman Sachs notified that gold will act as a ‘buffer’ if the US will hit a recession.
Due to the ongoing pandemic situation around the world, there has been a massive upsurge seen in the price of gold. However, certain speculators find Bitcoin (BTC) will be backed by the same factors in the near future.
Gold Demand Will Upsurge In Coming Future
For gold, the leading financial firms such as Goldman Sachs, JP Morgan, and Morgan Stanley have found that the demand for gold will continue to increase. During this pandemic situation. If the value of US Dollar drops in the future, investors might buy gold. Thus, the gold price could reach up to $2000, as stated by Morgan Stanley.
However, a spokesperson from Goldman Sachs notified that gold will act as a buffer If the US will hit a recession. The predictions did not stop here; some analyst believes that the demand for physical gold like bars and coins will increase. The periods of uncertainty will affect the cost of products to increase. That uses gold for their manufacture purpose such as semiconductors, jewelry, etc.
As we’ve closely monitored the market in the wake of recent economic policy decisions, we've seen that the crypto asset class is not only resilient, but that interest is surging as the monetary stimulus has caused investors to look to $BTC as a potential hedge against inflation. pic.twitter.com/ZQn6ZIoRFQ
— Grayscale (@GrayscaleInvest) June 15, 2020
Investors Interest For BTC
Recently, the US investment fund Grayscale has shared a chart. That describes the performance of Bitcoin, Gold, Bonds, and SPX since 2020. It shows that investors’ interests towards BTC have increased and are finding it as a potential hedge against inflation.
The firm sells all prominent cryptocurrencies with the best price of over 23%.
Besides this, both Bitcoin and Gold are compared to flight assets. The digital asset management firm CoinShares has published a new index. That collaborates digital currencies with the prices of gold markets.
Bitcoin & stock correlation in 2020.
We have (sadly) "re-coupled" as of 10 June. Correlations at all time highs.
Notice the trend?
High levels of fear and uncertainty (eg. VIX) = high levels of correlation. pic.twitter.com/rKPjXpdz73
— Charles Edwards (@caprioleio) June 21, 2020
A few days back, Coin Metrics has revealed in its latest report that gold and bitcoin are showing a great correlation for the past several months.