The precious metals (PM) market has been rising in recent days, while the cryptocurrency market has also been rising. The spot gold price has jumped to $1,805 per ounce, up by more than 1.3% in the past 24 hours, while the price of silver has risen by 2.5%. As the prime ministers gathered their strength this week, the crypto asset market is still moving closer to the market valuations of gold and silver. In fact, the market value of Bitcoin is only slightly lower than the $1.47 trillion market of silver.
Precious metals rose, but investors saw digital gold sweep these markets
Since the Fed said last week that it would allow the inflation rate to rise moderately to more than 2%, and the central bank will continue to implement monetary easing, cryptocurrency assets and precious metals such as gold and silver have been on the rise.
The price of gold rose by 1.3% on the last day, and the price of gold has broken through the psychological level of $1,800 per ounce on Thursday afternoon. The price of gold also rose by more than 1.2% last week.
However, even if PM is on the rise, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, referred to gold price movements as “meh” in a recent interview.
“At present, I think the gold market is a’meh’ market. It is just stuck and has obviously been replaced by digital gold. Every day, everyone who understands and holds gold knows that their greater risk is not to A small part of the gold is allocated to Bitcoin. And this is just the beginning,” McGraw emphasized.
However, after the Fed’s meeting last week and the recent comments made by Eric Rosengren, President and CEO of the Federal Reserve Bank of Boston, gold, copper, palladium and silver PMs in Asia on Thursday It has risen during the trading hours. Rosengren said that it is too early to stop or contain quantitative easing (QE) policies, and the economy needs a lot of improvement before such dialogue can take place.
In addition, Bloomberg strategist Mike McGlone (Mike McGlone) is not alone, because many investors believe that the crypto economy will eventually overshadow the market value of PM.
Not long ago, David Grider, chief digital asset strategist at Fundstrat Global Advisors, stated that his company insists that Bitcoin (BTC) can reach six-figure prices. At the same time, Fundstrat also believes that Ethereum (ETH) may soar to $105,000 per unit.
According to statistics, the size of the entire crypto economy is US$2.22 trillion, which is higher than the entire market valuation of silver (approximately US$1.47 trillion). The valuation of Bitcoin (BTC) alone has far surpassed that of silver. This makes Bitcoin (BTC) the eighth most valuable asset in the world, while gold ranks first.
At the current price of .999 per ounce of fine gold, the market value of this bright yellow metal is approximately $11.382 trillion. Nevertheless, even though BTC accounts for nearly 73% of the market value of silver, the crypto asset now also accounts for more than 9% of the overall valuation of gold.
Delta Exchange Executive: “Bitcoin has lost short-term upward momentum”
Despite being positive in recent days, Pankaj Balani, CEO of Delta Exchange, a cryptocurrency derivatives trading platform, said: “Bitcoin (BTC) has lost its short-term upward momentum after falling below the 50 DMA (displacement moving average).”
“Price movements in recent days have confirmed this view,” Barani told Bitcoin.com News on Thursday. “Despite a sharp rebound from the range of $48-$50k, Bitcoin cannot sustain above $58k. $60,000 is the main resistance here. BTC has sold heavily from the level of $58k and has fallen below 20 DMA. on the other hand, [altcoins] Continue to show strength through the rapid progress of DOGE and ETH. This price trend suggests that we may have reached the short-term high of $64,000,” the CEO of Delta Exchange added.
What do you think of the trend of the precious metals and cryptocurrency markets this week? Let us know your thoughts on this topic in the comments section below.
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