Wall Street Giants Expect Gold to Rally Further: How Bitcoin May React

Bitcoin’s price action over recent days has been impressive, but even more so is that of gold. The price of the precious metal has cracked nine-year highs on the back of a confluence of macro trends. It now trades for $1,901. A gold ounce is a few percentage points short of the all-time high around $1,920, though many remain certain it can move higher. Bitcoin stands to benefit from a surge in the price of gold due to the implications that will have for sound assets as investments. For the first time in over nine years, an ounce of gold changes hands for over $1,900. This accomplishment comes after an extremely strong first half of the year for gold, during which it gained ~25%. Gold chart from TradingView.com Despite this strength, the precious metal purportedly has room to rally. And analysts say that Bitcoin stands to benefit. Bitcoin Could Benefit as Gold Is Expected to Move Higher Gold is expected to continue to a new all-time high after pushing past $1,900 in almost a historic fashion. Mark Mobius, co-founder at Mobius Capital Partners, recently told Bloomberg that gold is naturally an attractive medium in the ongoing macroeconomic environment: “When interest rates are zero or near zero, then gold is an attractive medium to have because you don’t have to worry about not getting interest on your gold and you see the gold price will rise as uncertainty in the markets are rising… I would be buying now and continue to buy.” Also bullish is Mike Novogratz, a former Goldman Sachs partner turned Bitcoin bull and founder of Galaxy Digital. While Novo did not speak on the cryptocurrency, he said in a recent interview that gold should pass $2,000 an ounce. Like Mobius, he cited the vast amount of money printing going on. Bitcoin will benefit if gold rallies higher, analysts have found. Bloomberg senior commodity analyst Mike McGlone said in June: “Increasing companionship with gold is a Bitcoin-price tailwind, in our view. At the highest-for-longest 52-week correlation and beta ever vs. the metal, the first-born crypto should continue to advance for reasons similar to gold, fueled by unprecedented global central-bank easing. Our graphic shows the Bitcoin-to-gold beta near 2x and the metal advancing toward an eight-year high.” This can be corroborated by data from Skew, which suggests that the correlation between the two markets is jumping.  A Better Performer Than Gold Paul Tudor Jones, a legendary hedge fund manager, expects Bitcoin to outperform gold in this ongoing macro environment. This comes in spite of his opinion that money printing by central banks will benefit both assets. He went even further. In a May report that he thinks BTC will be the “fastest horse in the race” moving forward, mentioning stocks as another asset class it will outperform. Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Wall Street Giants Expect Gold to Rally Further: How Bitcoin May React

Originally from Bitcoinist.com https://ift.tt/2WUX1NE