In the traditional markets, gold is reaching a high point in a decade that is a big victory for those who believe in the potential of gold in times of high inflation. The central banks cross the limit and print money in a large amount.
However, Bitcoin has not shown a massive breakout in either direction and is trading sideways. Per the renowned analysts, investors are accumulating leading asset slowly and are not in a mood to pump it abruptly. The low volatile nature over recent weeks is proof of it.
Gold at its High Position since 2011
The first time, Gold topped its all-time high value in 1980 when the price value touched the figure of $2,250. The value witnessed second ATH in 2011 when the price reached $1,950. Lisa Abramowicz from Bloomberg said:
“Gold is approaching a record high. On an intra-period basis, the highest was on Sept. 6, 2011, of 1,921.17. On a close basis, it’s at a record, of more than 1,900. (Deleted my earlier imprecise tweet.) Either way, gold is on a tear, with many expecting it to continue.”
Since the Coronavirus pandemic, the Fed has employed the policy of money printing more and more. It has led to high inflation state. And the FOMO state among the investors is pumping price even more upward. While talking to a crypto news outlet, Nick from Ecoinmetrics said:
“So it is almost a reflex that investors have, when they think the global economy could go south they buy gold. Which is pushing prices higher and creates more FOMO.”
No FOMO among Bitcoin Investors
Bitcoin’s volatility is currently at its lowest rate and is trading sideways. There are no FOMO in Bitcoin investors at all as supply is matching the demand. He said:
“The fact that Bitcoin has been trading in a range means that supply is matching demand in the market. I’m guessing investors are accumulating slowly at these levels. Slowly enough that the market can absorb the demand without rising.”
Bitcoin overcomes two resistances standing at $9,300 and $9,500 respectively. After defeating $9,600, it may soon attain the most psychological level at $10,000.