Bitcoin and cryptocurrency markets have started to correct. The excuse for Bitcoin drop this time is gold. How long will the correction in the markets continue?
The reason for Bitcoin decline is gold!
The correction that started yesterday in the cryptocurrency markets and Bitcoin continues. Bitcoin, Ethereum and Ripple hold above critical support levels. Critical support level for Bitcoin is 11 thousand dollars. $365 for Ethereum and 25 cents for Ripple forms the critical support level. For now, the top 3 cryptocurrencies are holding above these support levels.
Total cryptocurrency market capitalization shrunk to $20 billion, falling to $340 billion. A limited correction was expected after the high value increase in the cryptocurrency markets. We hope the effects of the correction remain limited.
Gold ounce price hits above $2,075 on August 7 (Friday) 2020, breaking an all-time record. After this date, gold prices, which have corrected above $ 100, declined to the band of $ 1,913.. The decline in Bitcoin and gold prices together indicates a strong correlation between the two economic assets.
Bitcoin and gold investors were expected to liquidate some of their investments from time to time to meet their financial needs.
Analysis by Skew shows that the correlation between Bitcoin and gold has increased recently. The monthly correlation between the two broke an all-time record.
Bitcoin/Gold 1 mth correlation reaching new all-time highs, giving momentum to the store-of-value narrative for BTC in these “money printer go brrr” times. pic.twitter.com/hr7l8GPvF8
— skew (@skewdotcom) August 10, 2020
In a sense, the increasing correlation between gold and Bitcoin Bitcoin makes investors happy. Because the high correlation shows that Bitcoin is starting to be perceived as a value accumulation tool like gold.
- Bitcoin is like in the last quarter of 2016: Tsunami is coming!
Famous gold investor Peter Schiff stated that misguided gold investors are selling gold. Schiff points out that the announced US producer price index is higher than expected.. Therefore, he thinks that the increase in gold prices will continue.
Misguided traders are once again selling gold in reaction to much hotter than expected inflation data. July producer prices surged .6%, twice estimates and the biggest rise in 2 years. Inflation will continue pushing prices higher, especially #gold, as real interest rates fall.
— Peter Schiff (@PeterSchiff) August 11, 2020
Source
NANO coin price prediction, price analysis and future predictions