In the latest Bloomberg Market newsletter titled “Five Things You Need to Know to Start Your Day,” the executive editor of the news platform, Joe Weisenthal, referencing his observation on Bitcoin during his vacation last week, said he was surprised with how Bitcoin’s growth in the market looked similar to that of gold which has also seen price up-growth in recent times.
He said based on the 20-day chart of the two assets, it is clearly visible that their intraday action is similar, adding that it is weird how Bitcoin “trades all through the weekend and gold doesn’t.”
The senior editor said this is an indication that institutional trading of Bitcoin is growing, and the cryptocurrency is playing a big role in the institutional portfolios, hence whatsoever macro and market inputs that is possible enhancing gold’s price in the market is also pushing Bitcoin’s price.
Joe further explained that it is really surprising that the similarities between the two assets are very close to the extent of “a tick-by-tick or minute-by-minute basis.”
When Midas Affected BTC
In the early days of the year 2020, the military war that ensued between Iran and the United States was one of the first major risks Bitcoin passed through, based on how it reacted whilst the war was ongoing.
After the violent sell of Bitcoin witnessed in mid-March, the crypto giant portrayed its risk-on side.
The 13th of March, 2020, marked a bad day for Bitcoin, as it experienced a huge sharp drop. This was also same for gold, although it (gold) struggled to rise a bit while BTC plummeted to almost -50%.
At July ending, gold rose steeply to about 2, 074 USD, and Bitcoin grew from -0.1% to a new 67.1%, this according to Skew.
This healthy competition continued between gold and Bitcoin. Having endured a painful correction on August 11, the giant crypto and gold have skyrocketed side by side, with Bitcoin recording a new 2020 high of 12,000 USD yesterday August 18.
Even though he disbelieves the plausibility of the digital asset, Joe confesses that the feat which Bitcoin gained in the market up till yesterday, has given it more official recognition.
He further added that the crypto king is a “macro sensitive” economic asset having the same gales with plummeting interest charges, being the most outstanding one.