The post Gold Price Soars Past $3,340: When Will Bitcoin Price Catch Up? appeared first on Coinpedia Fintech News
Gold price has heavily benefited from capital flight as investors flee from volatile stock markets amid global trade wars.
Bitcoin price will gain bullish sentiment after gold hits rally top and cash rotation kickstarts.
The U.S. stock market recorded more forced liquidations on Wednesday amounting $1.5 trillion, after Fed Chair Jerome Powell said that more volatility is likely ahead. With the trade war negotiations taking longer than anticipated, investors have been fleeing to the Gold markets to protect working capital.
Moreover, inflation is anticipated to increase as investors show midterm fear amid the weakening U.S. dollar against major currencies.
Gold Market Blowout
Gold price gathered more bullish momentum during the North American trading session on Wednesday as the trade negotiations rattled global stock markets.
In the past 24 hours, Gold price rallied over 3 percent to trade at about $3,337 at the time of this writing. Gold has continued with price discovery since its bullish breakout in October 2023, catalyzed by rising demand from global central banks led by China.
When Bitcoin?
Bitcoin has earned the title digital gold in the past decade, especially after emerging from the 2008 financial crisis and thriving through the Covid-19 crash. As Coinpedia reported, the Federal Reserve already views Bitcoin as digital gold and not as a competitor for the United States dollar.
Consequently, the U.S. government under President Donald Trump is keen to tap into Bitcoin to reduce its huge debt burden.
From a technical standpoint, BTC price has in the past cycles experienced parabolic rallies every time that Gold price reached the peak of its rally. Based on historical trends, Gold price is expected to reach $3,500 in this cycle, or even higher depending on the trade war dynamics.
In the three month candlestick, gold price has reached the top after the Relative Strength Index hit a minimum of 93, whereby it currently hovers about 83.