Gold crashes as Bitcoin’s price reaches record high levels since the price of gold is around $1,838 per ounce while BTC is trading at $18,402 at the time of writing of today’s Bitcoin news.
Bitcoin was buoyed by corporate investments and didn’t really do anything after the US Election ended. Bitcoin nearly reached its all-time high from 2017 but it now seems that economic crises are the fuel that Bitcoin needs. While 2020 was probably the worst year for the global economy, BTC managed to recover from the losses in value from 2018 after the extended bearish correction.
The trend intensified in recent days as the markets stay quite optimistic after Trump’s alleged defeat and the rollout of a COVID-19 vaccine which is getting closer by the day. Bitcoin was outperforming most of the traditional investments like gold considering the store of value par excellence in the international finance world. Over the past few weeks, the developing events made gold less attractive as investors started buying shares in a business that could soon recover from the global economic downturn like the logistic or big pharma companies and you can see a difference in the charts.
Gold crashed and corrected lower since August while maintaining strong support at $1,835. Lower spikes are usually a warning sign for the holders but the precious metal stopped from entering the overbought territory and is now moving towards a balanced ratio between buyers and sellers. This week started off quite bad for the precious metal by dropping about $45 between the daily high and its current price. The short-term traders need to beware of another bearish breakout since now gold trades for $1,838 per ounce which is really close to a support level.
Bitcoin traders had enough from the 2018 crash and now want to relive the moments in 2017. The world’s leading crypto asset by market cap was in a stable upward movement since the covid-19 induced marker crash in 2020. However, after the bearish month in September, the news of major institutional investors catapulted Bitcoin to new highs. Three events seem to have been crucial for moving BTC from rising to skyrocketing like Square’s purchase of $50 million, PayPal’ support, and Joe Biden’s presidential win.
The bullish channel became steeper after these events looking like 2017 which resulted in BTC is heavily overbought. According to a report, PayPal and Square were causing a shortage in the markets by buying more than 100% of the newly mined BTC. If the number one asset remains in this channel, it could reach a new all-time high before 2020 ends.
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