The spot gold rate climbed 0.49 percent in early European trading session to trade at $1,492.68 as anticipation of looser monetary policies indicated potential value-depreciation of fiat currencies. Meanwhile, the BTC/USD instrument on Coinbase, which tracks bitcoin’s performance against the US dollar, plunged by 0.92 percent to $10,000. The move downside marked bitcoin’s fourth consecutive daily session in negative territory.
Gold and Bitcoin moving in opposite direction | Image credits: TradingView.com
The intraday polarity in the bias of Gold and Bitcoin showed an uneasiness of investors towards putting money in the latter. Morgan Creek Capital co-founder & partner Anthony Pompliano in June projected monetary easing policies as breeding grounds for bitcoin bulls, stating that a drop in the value of fiat currencies would create demand for non-sovereign assets/currencies like bitcoin. Meanwhile, noted economist Alex Krüger had indicated that only speculators – for now – would drive the price of bitcoin higher, not institutional investors.
European Central Bank President Mario Draghi just I hinted at new interest rate cuts and more QE.
Add in the May 2020 Bitcoin halving and you have the perfect storm.
Cut rates. Print money. Make BTC more scarce.
Long Bitcoin, Short the Bankers!