Gold breaks through $1,800 and approaches a record high. Will Bitcoin follow?

Gold prices have been rising since May last year, and especially since March 2020. They have risen by $400, or about 30%, in the past four months, exceeding $1,800 for the first time in nearly a decade.

The rise in gold prices is related to the quantitative easing and economic stimulus policies of central banks in response to the COVID-19 pandemic. The industry believes that this is also conducive to the rising price of Bitcoin. Like gold, Bitcoin has a positive macroeconomic foundation.

However, Bitcoin, known as "digital gold", has been trading sideways for more than a month, with a weak trend and failing to follow the upward trend of gold.

According to a previous report by Bitpush, Bloomberg stated in a report that "2020 will be an important year for Bitcoin's transition to digital gold." This emerging digital asset is gradually maturing and will become an important store of value asset.

However, Bloomberg editor Joe Weisenthal believes that Bitcoin failed to rise amid the economic turmoil in the first half of this year and missed a good opportunity to prove itself as "digital gold."

He believes that despite the turmoil in global markets in the past few months, the price of Bitcoin has not reached new heights, and has not even been able to break through $10,000 for a long time. In fact, the trend of Bitcoin is basically the same as that of the S&P 500. From the rise at the beginning of the year to the collapse in mid-March, and then to the subsequent rebound and fall again. This correlation between Bitcoin prices and the stock market undermines the argument that Bitcoin can provide non-correlation for investment portfolios.

However, over the past period of time, the volatility of Bitcoin prices has been decreasing, and there is also a view in the industry that this may be a precursor to a breakthrough in its price trend.

Image source: pixabay

AuthorLiang Che

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