Gold’s increasing demand is the exact tune Bitcoin needs to key into a bullish marathon. Although proponents of Gold argue that the increase in gold’s value does not move in favor of Bitcoin. For what it’s worth, interest in gold of any sort is another proof that gold is not losing its setting as a prime asset of value storage. And because Bitcoin is still range-bound below its all-time high, Gold bugs like Peter Schiff only believe that Bitcoin is nowhere close to rivaling the physical gold. But the latest figures are statistically relaying a contrasting message.
Bitcoin’s price has been striving to cross above the $10,000 range for the most part of this year but has slipped on several occasions. This failure did not particularly send Bitcoin to the lowest points. Surprisingly Bitcoin has defied analysts’ predictions that prices could go downhill to continue holding strong above the $9,000 mark. At the time of this writing, Bitcoin has maintained the gains from the previous day and is now close to breaking $10k again, but that is very likely to change and the much-needed bull run is drawing nearer every day and the growing interest in Gold’s adoption signifies this.
Cryptocurrency analyst Joseph Young shed light on this some hours ago on Twitter when he noted that a $30 upsurge in the price of Gold is all that is needed to push it to a new all time high. Apparently, this was last seen 9 years ago and with gold increasing by 30% within the last 4 months, this new level could be attained again.
What that means for Bitcoin is that investors are actively seeking for new stores of value. With the United States announcing that billions will be needed for another stimulus cheque, and this will require the fiat printers to go “brrrrrr” like the last time, investors are reluctant to take chances with inflation. Minimizing losses and maximizing profits has become the mantra for survival and Joseph Young thinks that just like gold, this could be valuable for Bitcoin, as investors will turn to Bitcoin for the safeguarding of their wealth.
Gold is $30 away from reaching an all-time high above $1,920, for the first time in 9 years. It’s up 30% in 4 months.
Demand for alternative stores of value is evidently increasing as investors fear inflation.
In the long-term, it could really benefit bitcoin as well.
— Joseph Young (@iamjosephyoung) July 24, 2020
The 2020 year to date performance as posted by Bitcoin investor Preston Pysh, shows that Bitcoin has held the first position for the most part of 2020. While Gold added 25.3% to its value, Bitcoin is seated higher at 32.8%. If investors follow these metrics, Bitcoin might struggle to withstand the enormous dive in from investors.
2020 year to date performance:
S&P500: -0.28% pic.twitter.com/ebqQQqkRfG
— Preston Pysh (@PrestonPysh) July 24, 2020
Another analyst popularly known by his Twitter username as Crypto Dog is equally just as bullish about Bitcoin too, as he warned that there is limited time to buy Bitcoin below $10,000, inferring that prices might not remain below $10k after the close of July.