Gold and Bitcoin: different store of value assets

In recent weeks, both gold and Bitcoin have reversed their trends, attracting capital again.

Interest on gold and Bitcoin returns

Investors bet on gold and Bitcoin again

Over the past month, gold and Bitcoin have been reinforcing an uptrend despite starting from different paths.

In the last 6/7 months, the yellow metal and the digital currency, despite having common characteristics that make them safe haven assets by nature, have not performed as expected and have not lived up to this status. .

Scarcity in number, their intrinsic value and the role they have carved out for themselves in the world of finance and beyond should have made them rise in value, but physical gold in particular has not performed well at all, suffering a plateau around $1400/$1500 in price.

In the last two weeks, however, due to the continuation of the crisis, the difficulties in finding raw materials, the abatement of a technical recession and the latest movements in terms of rates by the fedhave had a positive influence in reactivating their path.

Gold is currently hovering around $1,700 and futures are slightly more positive than in the past, showing an opening in the market.

A similar but somewhat better story is that of Bitcoin, which despite most analysts’ estimates, did not break above the $18,000 mark and did not drop to expected levels of $15,000 or $8,000 depending on the most pessimistic forecasts.

BTC has been floating around $20,000 the entire time and then benefited from a mini-positive trend in the last two weeks to date.

The current price of Bitcoin at the moment is $23,000 and it is targeting $24,000, which is the first step away from the downtrend.

If that’s the case, some analysts are giving it between $26,000 and $30,000 by the end of October as goodwill for those who dropped out of the project.

Both the yellow metal and the queen of cryptocurrencies are once again attracting large amounts of capital and this is also seen in the trading volume.

The usefulness of shelter assets

To protect one’s capital, it is certainly essential place part of the portfolio in one or more refuge assets.

This is all the more important at a time when, like this year, inflation is soaring and the countermeasures taken by central banks are not yet having the desired effects.

The situation seems to have returned to “normal”, even more so with the macro situation we are currently experiencing, which seems far from its peak despite the fact that the GDP figure improved to 0.9 from 1.6 in the quarter past.

In short, time has shown mike novogratzCEO of Galaxy Digital, right, who on the microphones of CNBC had said:

“We’ve had tremendous deleveraging and I think most of that deleveraging is now out of the system.”

Meanwhile, Ethereum also changes gears and returns to $1,600/1,700, helped by the news of the Meltdown indicatively taking place in September.