Jakarta, CNBC Indonesia – Gold and Bitcoin are like rivals. If the price of gold rises, the price of digital assets mother of all cryptos Bitcoin tends to go down. Both of them are competing with each other to be glimpsed by investors and traders, both retail and institutional.
Limited supply amid ultra-loose monetary policy and expansionary fiscal passes countercyclical policy measures making Bitcoin in demand. The crypto currency player made by Satoshi Nakamoto is now attracting big money, from financial companies such as banks to hedge funds to electric car manufacturers.
The inflow of money into Bitcoin assets caused the price to soar up to one hundred percent before finally plummeting significantly recently. At the same time, many investors are withdrawing funds from gold.
If you imagine at a glance, investors are starting to shift their money to riskier assets. The improving risk appetite is also supported by a firmer economic outlook this year as vaccinations continue to be aggressive in many rich countries.
In fact, there are those who equate Bitcoin as digital gold and deserve to be used hedging asset when the body temperature of the world economy begins to warm. But unlike gold which has been tested for centuries, Bitcoin is just new kids on the block the new age of corn.
When inflation in the US started to become more pronounced, the gold prestige that had receded began to rise again. Now it’s Bitcoin turn to be depressed. When gold again broke through to US $ 1,850 and now it reached US $ 1,867 / troy ounce above its 200-day average price (MA200), the value of Bitcoin fell.
As if the brakes failed, since mid-April Bitcoin has lost nearly 37% of its market capitalization. Gold actually jumped 5% more at the same time. From US $ 63,000 / BTC, now Bitcoin has dropped to below US $ 40,000 / BTC.
Many factors caused the Bitcoin price to fall. Starting from the response of policy makers who prohibit Bitcoin as in China.
Warning on the use of Bitcoin as a medium of exchange by US Treasury Secretary Janet Yellen and veteran economist Uncle Sam Roubini until recently there was Mr. Crypto Pompom who else but Elon Reeve Musk.
Seeing mining activity to validate Bitcoin transactions which consumes a lot of electricity and goes against the vision and mission of the world crazy rich man, Tesla now no longer wants to accept payments using these digital assets. Contradictory to Musk’s original intent was.
Regardless, the relationship between gold and Bitcoin is getting clearer. Opposite directions! Even analysts believe that if Bitcoin landslides, it does not rule out the possibility of gold prices going to the top.
Analysts are starting to estimate that the price of gold will return to the level of US $ 2,000 / troy ounce is an event with a great opportunity. Especially if inflation continues to rise but the Fed is still reluctant to act hawkish. The depressed US dollar provides the most conducive conditions for gold to shine again.
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