Home Coins Bitcoin (BTC) Bitcoin may sustain $10K as gold nears ‘inflection point’ vs. stocks

Bitcoin may sustain $10K as gold nears ‘inflection point’ vs. stocks

Huge gains in stock markets despite the dire economic consequences of coronavirus may soon be a thing of the past, one analyst warns.

In a tweet on Sep. 4, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said that gold may soon get the limelight as markets reach an “inflection point.”

Strategist: fiat markets may soon face day of reckoning

“In a battle of the bulls, we see greater potential endurance favoring #gold over the #Nasdaq,” he wrote. 

“The conundrum of monetary and fiscal stimulus lifting most assets may be nearing an inflection point, where the increasing certainty of QE and budget deficits firm gold’s foundation more.”

McGlone was referring to the major market phenomenon of the past six months — equities keep going up, even reaching new highs, while central bank interventions in the economy reach unprecedented levels. 

Previously, analysts even postulated that stock markets’ value no longer matters due to the extent of manipulation since March.

Gold and Bitcoin (BTC) have both profited from fiat uncertainty since July.

Nasdaq vs. gold, central bank balance sheet chart

Nasdaq vs. gold, central bank balance sheet chart. Source: Bloomberg/ Twitter

Bitcoin and gold contrast fresh dollar pressure

Another curious counterpoint comes in the form of the U.S. dollar currency index (DXY), which recently plumbed two-year lows. For gold bug Peter Schiff, the outlook for the precious metal is likewise favorable thanks to geopolitical shifts as a result of this USD weakness.

Discussing news that China plans to reduce its dollar exposure, Schiff said that, as before, average Americans would end up footing the bill.

“If true this is very significant,” he tweeted. 

“In fact, my feeling is that China will reduce its exposure by much more. It’s also likely that other nations will do likewise. That means the Fed is gonna need a much bigger printing press and Americans had better be prepared to really pay up!”

Schiff added that during this week’s retracement, gold won out over Bitcoin, which saw sharper losses. New strength in DXY, however, may yet spell trouble for optimism over both assets.

Bitcoin vs. gold realized correlation 6-month chart

Bitcoin vs. gold realized correlation 6-month chart. Source: Skew

Earlier, Cointelegraph reported on eerie similarities between the current environment and that of 1929, the year of an infamous crash which celebrates its 91st anniversary Friday.



First published here

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
473FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,580FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.16
GBP
1.27
CHF
1.08
NOK
0.10
JPY
0.01
CAD
0.75
AUD
0.70

Most Popular

Non-custodial Staking to Release on the Zilliqa mainnet on 14 October | by Aparna Narayanan | Sep, 2020

Non-custodial Staking to Release on the Zilliqa mainnet on 14 OctoberShare your feedback on Zilswap UI and gZIL functionality as part of the public...

Inside the blockchain developer’s mind: The governance crisis

This is Part 3 of a three-part series in which Andrew Levine outlines the issues facing legacy blockchains and posits solutions to these problems....

Digital Commodity Exchange Act of 2020: US Lawmakers Propose Single National Crypto Framework

Lawmakers in the U.S. have introduced the Digital Commodity Exchange Act of 2020 to create a single, national regulatory framework for cryptocurrency...
bitcoin
Bitcoin (BTC) $ 10,655.85
ethereum
Ethereum (ETH) $ 347.23
ripple
XRP (XRP) $ 0.239727
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 215.58
bitcoin-cash-sv
Bitcoin SV (BSV) $ 156.23
litecoin
Litecoin (LTC) $ 45.89
eos
EOS (EOS) $ 2.54
binancecoin
Binance Coin (BNB) $ 24.43
okb
OKB (OKB) $ 6.35
tezos
Tezos (XTZ) $ 2.23
leo-token
LEO Token (LEO) $ 1.24
cardano
Cardano (ADA) $ 0.095773
monero
Monero (XMR) $ 93.23
stellar
Stellar (XLM) $ 0.073762
chainlink
Chainlink (LINK) $ 10.56
huobi-token
Huobi Token (HT) $ 4.63
tron
TRON (TRX) $ 0.026656
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 68.15
neo
NEO (NEO) $ 21.47
iota
IOTA (MIOTA) $ 0.257404
nem
NEM (XEM) $ 0.110607
zcash
Zcash (ZEC) $ 55.21
maker
Maker (MKR) $ 507.26
paxos-standard
Paxos Standard (PAX) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 4.97
vechain
VeChain (VET) $ 0.012861
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX Token (FTT) $ 3.62
kucoin-shares
KuCoin Shares (KCS) $ 1.03
waves
Waves (WAVES) $ 2.37