Bitcoin is the currency of the future and the best investment of the decade and this is affecting the price of Gold right now! More and more investors are selling their Gold positions to buy more Bitcoin.
In this Bitcoin analysis, we will be answering the question of what is causing this sell-off in Gold and what we should expect in the coming days
What is causing this massive sell-off in Gold, what does it mean for the Bitcoin price and what can we expect to happen in the coming days.
Bitcoin The Best Of Both World
During this time of economic stagnation, investors are looking for ways to protect their wealth while still making amazing returns. Bitcoin is the best solution for this problem, the cryptocurrency provides the best hedge against a weak global economy and a dying financial system.
However, Bitcoin is currently undervalued trading at $23K. This provides a massive potential growth opportunity for investors to take advantage of in both the short term and the long run.
Gold on the other hand has been unable to provide investors the kind of returns or the potential growth opportunities Bitcoin offers. Currently saturated and unable to break through the $2,074 ATH, we are seeing a massive sell-off in the Gold commodity as more investors and large institutions continue diverting funds away from Gold and into Bitcoin.
This exodus has caused the price of Gold to tumble from its previous highs of $2,074 to a low of $1,766 before recovering some of those losses.
However, we expect this massive inflow of investors into the Bitcoin market to continue even as a new strain of the coronavirus has been discovered.
How Will This Affect The Bitcoin Price?
This is bad news for the economy and will likely see investors rebalancing their portfolios to take this new development under consideration. We can expect to see demand for Gold and Bitcoin to begin surging in the coming days.
To control the spread, countries are putting their economies back on lockdown, slowing recovery and making the fiat currencies weaker. This will play out well for Bitcoin.
We also created a video below where we carried out an in-depth technical analysis of the Bitcoin chart. We also talked about key fundamental factors that would affect the Bitcoin price in the coming days as well as key levels and patterns to watch for in the coming weeks.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With