Bitcoin bulls buy gold

Bitcoin bulls buy gold

2021-02-11 • Updated

What happened?

Bitcoin skyrocketed to a record high this week after Tesla announced it had made a $1.5 billion investment in the cryptocurrency. Cryptos are becoming more popular not only among traders, but also large corporations start showing their interest. By the way, Mastercard has uncovered its plans to let payments in crypto already this year. Apple claimed it would launch its own crypto exchange.

While some analysts believe gold will be soon replaced by crypto. We should admit that cryptocurrencies are highly volatile. Therefore, investors see gold as a way to hedge against this volatility due to its stability.

“If you’re into cryptos, you want to consider having some gold. Bullion “may act as a bit of a hedge against the volatility of cryptos,” said Newcrest Mining.

According to Goldman Sachs, gold and bitcoin can exist together. Even if crypto bites off some demand from the yellow metal, the precious metal will remain sought-after.

Technical analysis

Gold has been trading in a descending channel since mid-summer. This week it has gained due to the weak US dollar, but the upside is limited by the 200-day moving average of $1 850. If the price drops below the low of January 15 at $1 825, the doors towards the one-week low of $1 790 will be open. On the flip side, the breakout above $1 850 will push the price up to the 100-day MA at $1 870.

XAUUSDDaily.png

Unlike gold, BTC is up more than 50% in 2021. If it jumps above $47 000, the way up to the next round number of $50 000 will be clear. Support levels are at the recent lows of $39 000 and 37 000$.

You can trade cryptocurrencies in the FBS Trader app.

IMG_20210211_153033.259.jpg

Don't know how to trade cryptocurrencies? Here are some simple steps.

  1. Download the FBS Trader app. 
  2. Open an account.
  3. Start trading!

 

Bitcoin bulls buy gold

Similar

All attention to Biden's inauguration
All attention to Biden's inauguration

Joe Biden will take the post of president of the USA on the morning of 20 January 2021. Trump is going to skip the inauguration. What will be the market reaction? Let’s find out!

Latest news

Stocks that benefit from chip shortage
Stocks that benefit from chip shortage

Stocks of tech and auto sectors are in the focus of traders these days due to the global chip shortage. Let’s find out what is going on with chips and why it’s important for traders.

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera