“The Gold’s Future Depends on the Bitcoin Futures Success”
Some industry expertes gave their opinions regarding the falling of gold's price and the uptrend of Bitcoin.
In contrast with Bitcoin’s value uptrend, the price of gold is suffering. Some market experts see a connection between these two. People see both Bitcoin and gold as safe places for capital, during unstable periods for asset values.
As Bitcoin has surged, many analysts believe that investors are turning to the cryptocurrency as an investment, causing gold to lose value.
Gold remains at its Low Point
Since September, an exchange and fund trader for gold miners, the GDX has lost 15 percent of its value. The gold prices have dropped to its low point since July.
Larry McDonald talked about the issue at CNBC. He claimed that whenever rates have declined in the last couple of years, gold’s price has increased. There has been an approximately 82 percent connection between gold prices and bonds. However, the last week, that connection dissolved. Mr. McDonald blamed Bitcoin for this.
Bitcoin is eating the gold
In addition, he added that the uptrend of the leading digital currency is possibly causing the gold to fall even more.
At the moment, virtual currencies enjoy a market capitalization equal to 23 percent of liquid tradable gold. That number has increased 2 to 3 percent over a year ago, so it seems that digital currencies are eating into gold.
In the last month, the gold has declined more than 2 percent, while Bitcoin has increased its value more than double.
Furthermore, the launch of CBOE Bitcoin futures two days ago brought Bitcoin close to the levels of $16,800. Meanwhile, gold is still remaining close to its July lows.
The future of gold is depending on the success of Bitcoin futures.
A senior market strategist at RJO Futures, Phillip Streible stated talking to CNBC that Bitcoin futures contracts hold a key indicator for the future of gold. In the case Bitcoin futures collapse, gold will regain its honor as the safest form for a store of value.
Meanwhile, we’re anticipating the CME Bitcoin futures launch on December 18.
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