Bitcoin News Today – Gold has long been compared to Bitcoin. Since the advent of the cryptocurrency comparisons have been made between them as stated in our previous Bitcoin news. It is therefore not surprising that movement in the price of gold always attracts interest from the crypto community and vice versa. Of course, compared to the extremely volatile Bitcoin, Gold is a relatively stable asset. It is, however, worth considering if the change in the price of one asset actually affects the other. Despite the comparison of both currencies, this year has mostly seen Bitcoin and Gold move in opposite directions in the market.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin reached a $7, 432 low on June 4, just around the same time at which Gold was rallying and trading at around $1, 344 per ounce. The inverse movement of Bitcoin and Gold has been a consistent part of the market picture for 2019. That there is a correlation between both assets does not, of course, imply causation. However, of recent, both the prices of Bitcoin and Gold have been rallying together on the market. Gold rallied to over $1, 400 per ounce in June for the first time in over six years. Bitcoin meanwhile crossed an $11, 000 threshold as it continued recovering from a period of decline. This concurrent rise seems to kill whatever relationship the price of both assets might have had prior to now.
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The concurrent rise in both Bitcoin and Gold has a few people speculating. The market might get to witness people abandon Bitcoin in favor of Gold if the rally continues. Gold, of course, is a more stable asset, and it might seem like now is the right time to convert your Bitcoin into Gold. This is further strengthened by the fact that a block reward halving and its attendant uncertainty is looming soon for Bitcoin. Despite all this market movement, Bitcoin holders are not expected to abandon Bitcoin for Gold in any significant manner.
Bitcoin enthusiasts always like to point out that Gold has only psychological value. This argument, of course, stems from the fact that Gold is intrinsically valuable because we perceive it to be valuable. It is therefore highly improbable that anyone would switch from Bitcoin to Gold for any reason.
Bitcoin enthusiasts of course, also believe that cryptocurrency is the future. As such, jumping of the future to have some short term security in Gold will not appeal to most people. Unlike Gold which is rather stable, Bitcoin is much more volatile. In addition to its volatility Bitcoin also seems to be much more interesting to trade than Gold.
Whether the current rise in Gold and Bitcoin is going to be a long term one we are yet to see. Also, it is not yet clear if Bitcoin enthusiasts are right about their Gold claims. However, as the market unfolds over the second half of the year we should see more interesting dynamics play out.
What do you think about our Bitcoin news today? Will the bull rally gold is currently enjoying affect the digital gold? Share your thoughts in the comment section below.
Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.