Bitcoin Continues to Zoom, Gold Investors Left Behind?

February 15, 2021 07:20 PM AEDT | By Kunal Sawhney

Bitcoin Continues to Zoom, Gold Investors Left Behind?

Gold and Bitcoin Complimenting Each Other for Now

But now, both the assets are maintaining their own individual levels rather than vying against each other for being the best asset to bring a safety shelter. Additionally, these assets are complimenting each other at the moment with many industry experts suggesting that an exposure in gold can somewhat offset large volatility offered by investments in cryptocurrencies.

While gold is maintaining its shine for being a proven safe-haven asset, Bitcoin is climbing the price ladder on the back of global developments. For instance, the recent jump of Tesla on the Bitcoin bandwagon propelled the currency as the market reacted sharply to Elon Musk’s USD 1.5 billion Bitcoin splurge.

To Know More, Do Read: Tesla jumps on Bitcoin bandwagon, how is the crypto currency looking on charts?

Additionally, world’s largest custodian – BNY Mellon extending support to the emerging Blockchain technology, particularly cryptocurrency, has further propelled Bitcoin sky-high.

To Know More, Do Read: What is BNY Mellon’s latest initiative into the crypto world?

With each uptick in Bitcoin, the safety line for many investors, especially retail investors, is expanding exponentially, making the digital asset a hard sentiment play with its high volatility whilst shifting some towards gold again.

Meanwhile, gold is trading solid around USD 1,800 per ounce, providing many a perfect hedge against the large volatility in the cryptospace.

Gold has been a slow mover as compared to other asset classes, a major opportunity cost as compared to the rally witnessed in Bitcoin. The market now seems to be balancing its portfolio, taking advantage of the complimentary parts played by these assets for now.

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