There is a lot of madness going on both traditional and cryptocurrency markets: for the first time in several months, Bitcoin has surged, and crypto investors have taken advantage of this opportunity.
Why is BTC growing. Nigel green, CEO and founder of financial consulting company deVere Group, drew attention to the growing popularity of PTS in the cryptocurrency market and boldly stated on his Twitter platform that the cryptocurrency is potentially going to “knock gold out of its long-standing position“, being a reliable safe haven asset. In traditional stock markets, when stocks fall in price and inflation increases, there is a tendency to invest in gold, considering it a safe investment.
In addition, green clarified and tweeted that the value of Bitcoin in the trading market is rising along with gold amid tensions between the US and China. As socio-political tensions and power struggles between the US and China, the world’s two largest economies, increase, green says there is great potential for Bitcoin to grow even more if new crypto investors and established BTC bulls take matters into their own hands, and move away from traditional stocks. As if to prove the truth of his educated statement, it seems that investors are very much moving away from traditional stock markets, and the world economy is going up, because of the ongoing pandemic and political battles. Therefore, many believe that Bitcoin is increasingly becoming a safe haven asset. The price of gold also rose, much to the surprise of experts. Many financial investors suggest that this phenomenon may be related to the aggravation of us-Chinese trade and political tensions.
Others looked at the economic stimulus package that the US is planning to provide, and as an explanation they pointed to the fall of the us dollar, as a result of the mass printing of money. Therefore, investors may more often pay attention to gold and cryptocurrencies as hedging instruments, which leads to an increase in the value of both financial assets. Gold surprises everyone. The jump in gold came as a surprise to many market experts. This is regarded as an unusual phenomenon because stock prices have also risen recently, after falling in early March when COVID-19 began to spread across the US.
Usually seen as a safe haven when stocks fall or when inflation rises, the rise of this metal comes as a shock to many because neither of the two phenomena mentioned is currently happening. Gold defender and CEO of Euro Pacific Capital, Peter Schiff, does not seem to share green’s views that the cue ball is a safe haven asset.
On July 27, he tweeted that in light of COVID-19 and the resulting economic downturn, the US Federal reserve “will continue to print dollars until the dollar collapses.“ In his opinion, gold investors are fully aware of this mass-printing strategy, and therefore it will continue to grow. What’s next for BTC?. As for Bitcoin, since its recent breakout over the $ 10,000 milestone on Monday, cryptocurrencies are now interested in the first crypt reaching the next mark – $ 10,500.