On the brink of Bitcoin’s depreciation, which has fallen sharply, the gold market will be separated from the light and dark after April.Cryptocurrency Bitcoin quotes and financial markets
Cryptocurrency (virtual currency) market on the 9th.Bitcoin’s price, which broke below the triangle, fell sharply to $ 31,000 at one point and then rebounded.TradingView BTC / USD Daily
Most recently, the downtrend since mid-May has been clear, and the deterioration of momentum is also noticeable.If it bottoms out, it will hit a year-to-date low of $ 27,678 and $ 22,000 to $ 24,000, which was also in December last year.Investors will be wary of the $ 20,000 level, which is the highest level of the cryptocurrency bubble three years ago.
On the other hand, it is currently oversold, and there are some rises with short covers.
The current focus is on whether the $ 31,000 will hit a double bottom and whether it will stop declining at around $ 30,000 if it continues to fall.
Gold market and light and dark
A report by the World Gold Council (WGC), an international research institute, showed an interesting trend for gold, which rose + 8% in May 2009.gold
Looking at the monthly flow of funds in exchange-traded funds (ETFs) from June 19 to May 2009, the amount of global gold inflows that have been in the negative territory since the +4.8 billion dollars recorded in September 2008 Turned positive.The breakdown of +3.4 billion dollars is mainly in Europe and the United States, and it is said that Asia was -300 million dollars.
In this regard, the WGC said, “It makes more sense to think that the plunge of virtual currencies such as Bitcoin had an effect, rather than the theory that inflation concerns are rising.” It shows a negative correlation in the short term.
Precious metals such as gold have a fixed total amount (maximum supply amount) that exists on the earth, and since it costs a lot to mine, it is easy to maintain value for inflation and it is recognized as a safe asset in the risk-off phase.Has been done.
In the gold market last year, the inflow of funds accelerated due to low interest rates and concerns about currency depreciation due to large-scale monetary easing.
In July 2008, it reached a record high for the first time in about nine years, reaching the level of 1 troy ounce = $ 2,000.It continued to grow to $ 2075 in August 2008, but after that it fell sharply in inverse correlation with the soaring price of Bitcoin.It fell to $ 1,670 in March 2009.
Since April, when Bitcoin peaked at a record high of about 7 million yen and began to fall, the gold market has turned upward and has recovered to $ 1,893 as of June 9.GOLD / USD
In a report entitled “The Investment Case for Bitcoin” in January 2008, U.S.
asset management company VanEck said, “Bitcoin (BTC) with permanence, rarity and anonymity already has monetary value.
It has the potential as digital gold.” There was a lot of interest in alternative assets similar to gold.
The same is true for Bitcoin, where there is no centralized issuer and the algorithm sets a mining limit in the sense that it can be redeemed at similar prices in any country and centralized reserves cannot be controlled.
Therefore, in the bull market of BTC, it is often pointed out that institutional investors have moved their investment funds from the gold ETF market.In March of this year, Bloomberg analyst Mike McGlone analyzed an index comparing Bitcoin and gold.He claimed that the portfolio was being replaced.Digital #Gold Pushing Aside the Old Guard –Gold will always have a place in jewelry and coin collections, but most indicators point to an accelerating pace of #Bitcoin replacing the metal as a store of value in investor portfolios.pic.twitter.com/RR0CCWmksF
— Mike McGlone (@ mikemcglone11) March 8, 2021
Relation: “Acceleration of the pace at which Bitcoin replaces gold” Bloomberg analysts consider data
When Bitcoin hits the ceiling and peaks out from April to May this year, the outflow of funds from institutional investors will be noticeable.
According to The Times, British asset management company Ruffer reduced positions such as gold in the “Multi Strategies Fund” in November 2008, spending about 63 billion yen on Bitcoin investment, but 20 The position was canceled in April of the year.
The profits were reinvested in defensive assets such as government-issued bonds, inflation-indexed government bonds.
Relation: Japan’s major asset management company temporarily withdraws from Bitcoin investment Profit of about 120 billion yen Trends of individual stocks
Data from data analytics firm Crypto Quant confirmed a large outflow of about 400,000 ETH on Ethereum.CEO Ki Young Ju pointed out that it was a bullish signal and said that there was a possibility of OTC (over-the-counter) trading by institutional investors.This is a pretty rare bullish signal.
Might be OTC deals for institutional investors.$ ETH https://t.co/BBZ9NfDwIK
— Ki Young Ju 주기 영 (@ki_young_ju) June 9, 2021
At the London Hard Fork scheduled around July, “EIP-1559”, an improvement plan for Ethereum that introduces a new fee model, will be implemented, but since it is expected that the base fee will be incinerated (burn), ETH It is attracting market attention because the decrease in supply of stakes takes on the nature of deflation.
Relation: Market attention Ethereum improvement plan “EIP-1559” analyzed by Deribit analyst Popular trading related articles Images used under Shutterstock license“Cryptocurrency” means “cryptographic assets”.
