Bitcoin price corrects downwards after swinging and hitting a 10-week long resistance slightly above $10k with only 2 days to halving remaining. However, this time the trend before halving seems to be quite different, unlike the one seen in 2012 and 2016. And, this time, analysts and influencers believe that the 2017 bubble hysteria or even more will be visible post halving 2020. Well, the gains over the past 8 years post the first and second halving have been 10 folds, so if we consider the gain after the current BTC halving event, Bitcoiners will be the new GDP whale and only contributors. This appears nothing less than a blunder to the entire investor community.
But now, when the other investment assets have fallen on their knees and are lacking traction, Bitcoin price grew rampantly with steady support after the mid-March crash. Nonetheless, this economic standstill and financial crisis are far deeper than the ones seen in 2008, 1930, and even other intermittent hits. This time the traditional investment avenues like Gold and Oil have also suffered a major breakdown.
Gold—the safe-haven for investors, is ranked amongst the top 5 investment avenues since forever now. However, this time Gold lost its charm on the back of unparalleled central-bank easing, which will lead to inflation or may be hyperinflation, which is not likely to be a great variable for the economy’s recovery.
#Bitcoin and #gold sit atop our list of assets most likely to appreciate in 2020, on the back of unparalleled central-bank easing. Both have had significant shakeouts. Bitcoin is in an extended period of trading within a range and will eventually break out higher, in our view. pic.twitter.com/EuqUgNjsIN
— Mike McGlone (@mikemcglone11) May 8, 2020
Additionally, the entire investment market is a volatile space at present, and Gold is not an exclusion. Reiterating, Gold is not excluded but has been just losing its spark as a safe-haven, and many institutional investors now believe that Bitcoin will breakout soon. Comparing the performance of the two, we can have a fair judgment as to adding BTC in the investor portfolio soon will be a safe move.
— Austin Rief (@austin_rief) May 8, 2020
Taking into consideration the YTD growth and rebound percent from the March crash, Gold Spot was trading around $1,520 at the onset of 2020 and is currently trading with a spike of nearly 11.9%, with strong resistance at $1,748.
While, on the other hand, Bitcoin started the year trading around $7.2k and currently trades with a rebound of over 36%, which clearly shows the difference of growth. Moreover, BTC has spurred by over 155% from the downturn in March, where the coin had hit the yearly low. And, Gold Spot rebounded by merely 17%, leaving us with a question what went wrong? Where is the buying demand of the safe-haven or is the safe-haven tag given to the US Dollar due to liquidity crunch assumptions amidst the economy’s big bang.
However, now when liquidity is the foremost ticker than the US Dollar is the new safe-haven, but little did we note that the Federal Reserve is printing bills without giving a thought about the times when the comeback will take place along with inflation and soaring unemployment.
Is it already the time to reclaim the movement to Buy Bitcoin Drop Gold?