Bitcoin and Gold: Two assets that can't afford to ignore
|Given the fact that inflation is high in the United States, the precious metal is in a great situation. In reality, every single central bank is concerned about inflation. This is why the Fed's aggressive monetary policy isn't driving gold prices off a cliff. In general, the dollar index rises in response to the Fed's hawkish posture, which is bad news for gold prices. Yesterday's inflation data brought more bids to the market then many expected, and this pattern is likely to continue if inflation situation continues to go out of control.
The gold price is now trading above the 1,800 support level, which is actively monitored by traders and is also seen as a key support level. In the following days, the gold price is anticipated to reach the 1850 handle.
Bitcoin
Bitcoin, which is naturally recognized as an inflation hedge, has seen some bids over the last few days. There is, however, more to the tale than that. According to exchange statistics, whales are tampering with the bitcoin supply. This indicates a large increase in bitcoin outflow from crypto exchanges to personal wallets. This is causing a lack of bitcoin supply, which is pushing the bitcoin price upward.
In terms of price action, the greatest and most crucial figure for bitcoin is the support of 40K, and as long as this remains intact, which is unlikely, we may expect bigger moves for the Bitcoin price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.