Gold Soars as War Tensions Escalate: Bitcoin Left in the Dust
As Middle East tensions rise, the price of gold is approaching its all-time high, but analysts say they don’t think Bitcoin will follow suit as investors focus on other safe-haven assets. According to TradingView, the price of gold increased to $3,450 an ounce on Monday, just $50 short of its peak of just under $3,500 in April.
The generally slow-to-move asset has gained a staggering 30% since the beginning of the year, propelled by US President Donald Trump’s trade tariffs. More recently, Bitcoin prices dropped as a result of increased military action in the Middle East after an Israeli missile assault on Iran on June 13.
Should additional data or comments made by economic officials indicate wider concern over inflation or interest rate policy, this price could very easily tip into new, record territory,
CBS News
Is Bitcoin Ready to Outperform Equities in the Coming Weeks?
In contrast, Bitcoin has only increased by 13% so far this year. Additionally, it is trading 5.3% below the peak of $111,800 it hit on May 22 and is in danger of reaching its all-time high. But according to Tony Sycamore, an analyst at IG Markets, Bitcoin still trades more like US stocks, which are riskier assets, than gold, which is a safe haven.
In that sense, with US equity futures rebounding strongly today from Friday’s sell-off, there is room for Bitcoin to move higher and play some catch-up to US equity futures. I expect a retest of the $112,000 record high before a move toward the $116,000 and $120,000 region.
Sycamore
Market Recovery Underway: Bitcoin and Stocks Rise Post-Sell-Off
Henrik Andersson, an analyst at Apollo Crypto, agreed. He did note, though, that gold and oil are probably going to keep moving against stocks and Bitcoin in the near future.
We are seeing a recovery in equity futures as well as in Bitcoin after an initial sell-off on Friday related to the news out of the Middle East.
Andersson
LVRG’s research director, Nick Ruck, concurred. Since Bitcoin cannot duplicate the growth of the gold market and traders are now more focused on short-term volatility and liquidity, he said, the narrative of Bitcoin as digital gold is gradually fading, and BTC now behaves more like a hazardous asset than a refuge.
For more up-to-date crypto news, you can follow Crypto Data Space.
