Precious metals (PM) markets have been trading slightly higher in the past few days, while cryptocurrency markets have also seen gains. Spot gold prices are up more than 1.3% in the past 24 hours to $ 1,805 an ounce, while silver prices are up 2.5%. With the PMs gaining strength this week, the crypto asset markets are still moving closer to the market valuations of gold and silver. In fact, Bitcoin’s market cap is just below the $ 1.47 trillion silver market.
Precious metals are rising, but investors are seeing digital gold dwarf these markets
Since the US Federal Reserve announced last week that inflation will rise moderately above the 2% mark and the central bank will also continue its policy of monetary easing, crypto assets and precious metals like gold and silver have been on the rise.
The price of gold was up over 1.3% on the last day and when the Prime Minister topped the psychological price of $ 1,800 an ounce on Thursday. The price of gold has also risen by more than 1.2% over the past week.
Although PMs are on the rise, Bloomberg Intelligence’s chief commodities strategist Mike McGlone called the gold price action “meh” in a recent interview.
“Right now I see the gold market as a ‘meh’ market. It’s just stuck and is clearly being replaced with digital gold. Every day who knows and holds gold understands that their bigger risk is not in investing a small portion of that gold in Bitcoin. And it’s just getting started, ”emphasized McGlone.
However, following last week’s Fed meetings and recent comments from Eric Rosengren, the President and CEO of the Boston Federal Reserve Bank, PMs such as gold, copper, palladium and silver rose sharply during Thursday’s trading sessions in Asia. Rosengren said it was too early to stop or contain quantitative easing (QE) policies and that the economy must improve significantly before these talks can take place.
Additionally, Bloomberg strategist Mike McGlone is not alone in his beliefs, as many investors believe the crypto economy will ultimately dwarf PM market caps.
Most recently, David Grider, lead digital asset strategist at Fundstrat Global Advisors, said Bitcoin (BTC) could hit six-digit prices. At the same time, Fundstrat assumes that Ethereum (ETH) could soar to USD 10.5,000 per unit.
According to statistics, the entire crypto-economy, at $ 2.22 trillion, is worth more than the total market valuation of silver of around $ 1.47 trillion. The valuation of Bitcoin (BTC) alone comes terribly close to the eclipse of silver. That puts Bitcoin (BTC) in eighth place among the highest rated assets in the world, and gold is number one.
The shiny yellow metal has an estimated market capitalization of around $ 11.382 trillion at current prices per ounce of 0.999 fine gold. While BTC has reached nearly 73% of silver’s market cap, the crypto asset now also accounts for more than 9% of the total valuation of gold.
Delta Exchange Executive: “Bitcoin has lost momentum in the short term”
Despite the positive development over the past few days, Pankaj Balani, CEO of the crypto-derivatives trading platform Delta Exchange, said that “Bitcoin (BTC) lost its short-term upward momentum after breaking below 50 DMA (Displaced Moving Average).”
“Price movements in the past few days confirm this view,” Balani told Bitcoin.com News on Thursday. “Although Bitcoin bounced heavily from $ 48,000 to $ 50,000, it couldn’t hold over $ 58,000. $ 60,000 is the greatest opposition here. BTC was selling high from $ 58,000 and topped below 20 DMA. On the other hand, [altcoins] Continue to show strength with blow-off movements in DOGE and ETH. This price move suggests that we have most likely hit a near-term high of $ 64,000, ”added the Delta Exchange CEO.
What do you think of the precious metals and cryptocurrency market action this week? Let us know what you think on this matter in the comments section below.
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