The news of the emergence of a vaccine that could likely protect people against Coronavirus with 95% effectiveness greeted the world with amusement especially countries like the United States which are battling COVID-19 heavily.
The feeling of greatness was doubled for crypto lovers and investors as their wealth in Bitcoin grew up further following the news. However, the reverse was the case for Gold investors.
Subsequent to the news that grew confident around the world that the pandemic may soon end with the help of vaccines, precious yellow metal Gold had its market fall down the slope. Bitcoin continues to race upward towards the north, but Gold saw a significant drop that placed the value of the asset below $14,000 from around $14,500 per unit price.
This trend featured a decoupling of Bitcoin from Gold. Since March 2020, when Bitcoin surged up from below $7,000 to around $10,000, the digital asset’s trend and that of Gold has been somewhat identical in the market. The two assets have been moving rising and falling in almost the same pattern.
Bitcoin’s trend line has since then been below that of Gold in the market chart and Gold continues to possess more value than Bitcoin in the market. However, the latest event pushed the digital gold asset above the Gold.
At present Bitcoin maintains a strong trend above Gold in the market. Bitcoin is valued at $16,400, and Gold is priced slightly below $14,000.
While Bitcoin’s trend remains strong on the upside with a target for $16,500 resistance level, the outbreak above Gold’s trend line should help keep haters of Bitcoin and Gold maximalist mute. Gold lovers like Peter Schiff, among others, have in the past lashed Bitcoin with claims that the digital asset and its class lack profitability and they are not worth investing in.
However, Bitcoin has so far shown its potency to haters, moving by almost times three its value last year.
Investors of Gold are Switching to Bitcoin
For the fact that everyone is searching for a safe haven where they can make profit with their wealth, Anthonio Pompliano, a co-founder and partner at Morgan Creeks digital, believes that investors are now moving their assets to Bitcoin.
He claimed that with the present trend, investors are dropping their Gold assets to vest their money in Bitcoin.
Bitcoin and Gold not Competing – Peter Schiff
The CEO of EuroCap, Peter Schiff, known for demeaning Bitcoin, has responded to the incessant praises for Bitcoin which has inundated the social media in recent times.
Schiff said it would be out of point to compare Bitcoin’s return to Gold’s, the two assets have nothing in common.
As many continue to downplay Gold against Bitcoin owing to recent display from the latter, the CEO felt it was important to issue a rejoinder to clarify things.
He said weighing up Bitcoin and Gold is like comparing “the return on gold to the return on Tesla.”
Schiff added that early bubbles pushes most assets above Gold, but in the end, gold triumphs once the bubbles pop.
