After the recent halving, Bitcoin is trading under $10,000. Meanwhile, gold has managed to hit new highs.
The value of Bitcoin, although said to be on a bullish run in recent times, has struggled to hit key resistance level $10k as gold continues to set new records. The precious metal currently trades at its all-time highest since 2012, soaring 1.16% and trading at $1,760 per ounce. Bitcoin, however, at press time was trading at $9,606.
Bitcoin has faced rejection near $10,000 on Monday, the crypto’s third attempt to make that threshold in May. CEO of Luno, a crypto firm Marcus Swanepoel said that BTC has not been able to hold above $10k but has made gains over the year. He said gold has seen an over 15% increase in 2020 but cautions that BTC also has risen 33% in the year.
The CEO points out that BTC’s problem might be temporary bull exhaustion. Buyers’ fatigue usually occurs after strong price rallies like Bitcoin experienced in past months. Gold experienced the same also after a quick rally from $1,450 to $1,747 between March and April. It consolidated in a price range for about four weeks before going bullish again last week.
Gold Price Up but Bitcoin Pullback Imminent
Speculation has it that the king of crypto will underperform compared to gold in the short term. The crypto is also subjected to plunge as it did after the second Bitcoin halving in 2016 as the third halving occurred days back. But then, the plunge it suffered after the second halving was for a short time. After that, it set an all-time record within one year of the second halving.
Considering the time taken between the second halving and when it set, it’s all-time record then, a similar occurrence is anticipated after the third halving, according to Swanepoel. Also, other little factors that aided in the push then are still to be considered.
Crypto Demand Expected to Surge
Amidst all the lockdown and economic crisis, the glob is currently experiencing. Investors are on the lookout for alternative investments outside traditional assets like gold, U.S. dollars, treasuries, etc. They are now considering Bitcoin as this safe haven and hedge against inflation.
According to B2C2, a crypto firm, they claim more investors are entering into the crypto space. The firm’s CEO Phillip Gillespie said that they are experiencing an explosive growth market in volumes this year.
You can read more about BTC in our Bitcoin news section.
Muhaimin is a journalist, a fintech and crypto enthusiast who is passionate about its development in Africa and across the globe. Muhaimin derives pleasure in reporting and analysing happenings in the crypto world and a believer in Blockchain technology.
