Bitcoin Gets A Boost While Gold’s Value Is Being Crushed
The price of gold is at its lowest point compared to the time span of the last nine months. This precious metal has been dropping its value since the start of 2021, even in the wake of the upcoming commodity supercycle.
The yellow metal, almost always, has been considered to be the best storage asset for value because it sticks to its value, even when there is an economic crisis or a market crash. From the start of 2020, during the whole pandemic and volatile markets, gold has dropped its value consistently all the time and is at its lowest point in the past nine months.
2021 Is Not the Year for Gold
Gold is currently trading at $1,687 for an ounce. Compared to the beginning of the year, this yellow metal has lost its value by more than 11%.
Goldman Sachs had made the opposite prediction at that beginning of the year, stating that this new year might be the start of a prolonged bullish period market for gold and other commodities.
JP Morgan also said that gold and other commodities are likely to start a supercycle which will produce capital gains for a lot of upcoming years. They stated that the reason for this boom to happen might be the speculation by Wall Street that the economies are going to recover after the devastating effects of the pandemic and also as gold would be used to hedge in contrast to inflation.
According to industry experts, a boom in commodities may be coming as the economies around the world are reopening after the global pandemic, and the social and economic restrictions are gradually being lifted. The value of gold has been going down despite the fact that the value of other commodities like Copper, Nickel, and Silver has had an upward trend during this time.
Bitcoin’s comeback in the market
As the value of gold has been going down, BTC has been experiencing again in its price since it dropped massively after a market correction took place on 22nd Feb 2021. This dip in Bitcoin’s price encouraged a lot of big corporations such as Square and MicroStrategy to buy huge chunks of BTC while its price was down.
Bitcoin has now gained back a lot of lost value and is currently trading at around $51k.
