Gold tries to steal the show from Bitcoin, which waits for direction
Bitcoin probably won’t be out of the woods just yet, as the price remains below $ 50,000.
After dropping to just under $ 42,150, a level that was last seen in early February, traders are not ruling out $ 38,000 at the moment, which is seen as a good opportunity to purchase of the drop.
According to Michael Novogratz, CEO of Galaxy Digital, Bitcoin (BTC) will take its time to rally again.
“I think we’ll consolidate for a while, four to six weeks,” Novogratz said in an interview, calling a price range of $ 40,000 to $ 50,000 fair. Much like Bitcoin, it expects Ether’s “consolidation” period to be between $ 2,800 and $ 4,000.
$ BTC in a chart: Growing distribution of the coin, the retested resistance then continued to decline, now approaching support from previous highs and the EMA200 on Daily
Historically, anything below the three drive line is a buying opportunity – assuming it’s a correction, not a bear market pic.twitter.com/tfnV0jjdEg
– CryptoYoda (@ CryptoYoda1338) May 17, 2021
However, with the funding rates on Ether perpetual contracts picking up steam, suggesting the re-entry of speculators into the market, trader Loomdart sees “longing for a 30% cut in GBTC and crashing for a long time on BTC when its covariance.” , like the next big business.
$ 3,409.33 – $ 50.46 -1.48%
Volume 45.35 b Variation – $ 50.46 Open $ 3,409.33 115.92 m outstanding Market capitalization 395.22 b
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“Spot determines the final price of BTC. Leverage simply determines how far you have to go to get there. Do you think a fund is going to bomb the entire BTC spot that they bought because “the energy is bad”? Quite confident that we are going to ATH after these charades, ”he added.
Generation Change Once in a Generation Regarding Tesla CEO Elon Musk, voicing concerns about Bitcoin’s power consumption on Twitter while making numerous uneducated comments, Novogratz said he was taking the “ Musk mining comments at face value ”.
“I don’t think it’s Bitcoin specific, it’s all that’s specific: the market, YouTube – all use a lot of electricity. And Elon has clean energy business. “
“Let’s not miss the big picture for the small picture,” Novogratz said.
“We are going through a unique generational shift in this evolution of the crypto-blockchain, where the financial infrastructure begins to be rebuilt. This process is gaining momentum. “
And that’s why Novogratz expects Bitcoin to end the year higher. As we reported, Fundstrat’s Tom Lee has actually raised his BTC price prediction from $ 100,000 to $ 125,000 by the end of the year as the debate over Bitcoin’s power consumption intensifies. .
According to Novogratz, the next catalyst will be the United States Securities and Exchange Commission (SEC) which approves a Bitcoin exchange-traded fund (ETF) that it expects at the end of this period or early next year. .
“I guess the next catalyst is the ETF.”
Dollar falling, gold rising As BTC struggles to find its way, the traditional safe haven took advantage to hit $ 1,870 an ounce. Gold hit a low of around $ 1,674 in March, a level last seen in June 2020 and since then it has hit its late January 2021 levels.
“When two fight, there is often a third who benefits,” wrote analyst Mati Greenspan in his Monday newsletter Quantum Economics.
“In this case, it makes perfect sense. Bitcoin has stolen the show from gold throughout this round of over-enthusiastic fiscal and monetary stimulus. So now that bitcoin is in question and crypto influencers are occupied with infighting, the traditional hedging of inflation with a value slash is making a comeback.
While the precious metal is finally showing some strength, the US dollar is not feeling the same. The movement of the USD index actually coincides with that of gold, as it has been on a downtrend since the end of March.
Today, the USD index fell to 89.754, striving to hit new lows for the year, which was pegged at 89.2 in the first week of January, last seen around March 2018 .
The dollar slide comes in renewed hope that the United States will not raise interest rates anytime soon after Dallas Federal Reserve Chairman Robert Kaplan reiterated on Monday that he would not expecting a rate hike until next year.
The capped yields reflect that US monetary policy will remain easy, putting downward pressure on the dollar and inflating prices across the asset class.
Bitcoin / USD
43,987.7469 – $ 769.79 -1.75%
- Volume 60.32 b
- Change – $ 769.79
- Open $ 43987.7469
- Circulating 18.71 m
- Market capitalization 823.14 b
The Gold message is trying to steal the spotlight from Bitcoin, which is awaiting management, first appeared on BitcoinExchangeGuide.