Bitcoin [BTC] Logs $8450, Gold Tests 6-Year High at $1350 As Economic Turmoil Increases

Bitcoin and Gold are making hefty moves as investments in these safe havens continue to grow. While Gold is testing its 6-year high price near $1350, Bitcoin also moved higher towards $150 billion Mcap.

The rise in price in both these assets can be attributed to the recent economic turmoil that is gripping the economy from the Middle East, Europe, and due to the escalation between US-China trade war. The financial circumstances also point towards a rate cut by the Federal reserves in the US. Ross Norman, chief executive at bullion dealer Sharps Pixley, told the media,

“In people’s minds, there is a sense of a deeply darkening macroeconomic backdrop, in particular, the likelihood that the U.S. will drop interest rates quite soon,”

U.S. gold futures climbed 1% to $1,356.9 an ounce, while the spot price increased by about 0.9% on a weekly scale.

Gold/USd
Gold/USD 1-Month Chart on Forex (TradingView)

Bitcoin broke above $8450 which confirmed another solid move above $8000 as Bitcoin was looking to break below $7000 a couple of weeks ago. The most feasible way for institutional investors to invest in Bitcoins is through Futures contracts on regulated Exchanges and Institutional custody platforms.

Also Read: ‘Bitcoin and Gold are Not Even Comparable’: E.B. Tucker on the Future of Store of Wealth

There has been consistent growth in the volume of trades on crypto-based derivates all-around the world. Moreover, the near launch of Bakkt in a couple of months will also act as a significant catalyst for big movements in price.

The price of Bitcoin at 14: 45 hours UTC on 14th June 2019 is $8407. It is trading 3.08% higher on a daily scale.

BTCUSD
BTC/USD 4-Hour Chart on Coinbase (TradingView)

Correlation does not mean causation,’ a term that reasonably popular among the economic circles. Hence, while most people presumed that for one store of value to rise, the other has to fail drastically. However, both the assets seem to have their specific interest seekers. Meltem Demirors, analyst and Founder of Coinshare Research echoes these sentiments in her tweet,

Which asset do you think will outperform the other: Gold or Bitcoin? Please share your views with us. 

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