Bitcoin

Bitcoin price could hold around $ 10,000 as gold nears the “turning point” against stocks

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

In a tweet on September 4th Mike McGlone, Senior Commodity Strategist for Bloomberg Intelligencesaid Gold could soon be the focus of attention when the markets reach a “turning point”.

The fiat markets could soon face the end of the world

“In a bullish battle, we see more potential resistance favoring #gold over #Nasdaq.”wrote.

“The conundrum of the monetary and fiscal stimuli that are boosting most assets could near a tipping point where the increasing certainty of QE and budget deficits will further cement the foundations of gold.”

Bitcoin price could hold around $ 10,000 as gold nears the “turning point” against stocks
Bitcoin price could hold around $ 10,000 as gold nears the “turning point” against stocks

McGlone was referring to the main market phenomenon over the past six months: Shares continue to rise and even hit new highs, while central bank intervention in the economy hits record levels.

Analysts have even postulated this before Due to the degree of manipulation, the value of the stock markets has no longer played a role since March.

Gold and Bitcoin (BTC) have benefited 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 with the new dollar pressures

Another strange counterpoint is that United States Dollar Currency Index (DXY)who recently reached two-year lows. For the gold fan Peter ship, The outlook for the precious metal is equally favorable thanks to the geopolitical changes resulting from this USD weakness.

Commenting on the news that China plans to reduce its exposure to the dollar, Schiff commented as follows: Average Americans would end up paying the bill.

“If that’s true, that’s very important,” he tweeted.

“In fact, I have the feeling that China will reduce its commitment much more. Other nations are likely to follow as well. That means the Fed needs a much bigger press and Americans are better prepared to actually pay! “”

ship added that during this week’s retreat, Gold beat Bitcoin, which saw steeper losses. However, DXY’s new strength can still lead to optimism on both assets.

Bitcoin vs. Gold Realized Correlation 6 Month Chart

6 month chart of the correlation between bitcoin and gold. Source: Skew

Cointelegraph previously reported on it worrying similarities between today’s environment and that of 1929, the year of a notorious accident that will celebrate its 91st anniversary on Friday.

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