Uncertainties Pushing Gold and Bitcoin to High Levels
As global economic and political status worsens, investors are flocking to safe havens. Gold has hit it’s all-time high and bitcoin climes above $10k.
With talks of another stimulus package from the U.S. government we find ourselves in a loop of money printing that’ll be harder and harder to get out of. Also, the Fed has no intention of raising interest rates from its current 0.25%. This, along with tense U.S. and China relations, may send the USD lower than anticipated.
From Holding to Trading:
It’s no surprise that the cryptocurrency community is filled with speculators trying to make a quick buck. We see this even more when there are big upward movements. We are seeing a large inflow of held bitcoin into exchanges ready to be liquidated. Ki Young Ju, founder of on-chain analytics resource CryptoQuant has said, “BTC price went up too fast. Seems like other whales think so too”. If you were thinking about getting in soon, might be best to wait for a small pullback.
Looking into CME Group’s Bitcoin futures market can be a good indicator to where prices will move in the short term. The futures market believes that bitcoin has been overbought and it’s worth $300 less than market price.
Where Opportunity May Lie:
If you’re optimistic about safe havens continuing to prosper but don’t want to buy at relatively high prices you can consider their alternatives. I’ve been eyeing the gold/silver ratio for some time and although silver is catching up in value, it’s still under appreciated. As for crypto, if you want to put your money where you’ll see a higher return you should consider Ethereum. Before the weekend surge Ethereum was considerably under priced. It’s working it’s way up to fair value but it still has some catching up to do.