Gold rallys, and how about Bitcoin?...Bloomberg believes that the digital asset will reach USD 18K
Even with the anxiety over unemployment in the US and the US-China trade spat, US stocks rose thanks to the optimistic view on the eradication of Covid-19 and economic stimulus package. On 5th(ET), in the New York Stock Exchange(NYSE), Dow Jones Industrial Average 30 Index traded at 27,201.52, rose 1.39% compared to the previous trading session. S&P 500 Index ended at 3,327.77, advanced 0.64%. And the Nasdaq Composite Index closed Tuesday's session at 10,998.40, increased 0.52%. As for the Nasdaq Composite Index, it briefly broke above the USD 11K level, hitting a record high. The US blockchain stocks surged 5.59%.
International gold prices continue to rally. On the New York Mercantile Exchange, delivery in December finished trading at USD 2,049.30 per ounce, up 1.4% from the previous day. Gold price rose four consecutive trading days, and is an unprecedented surge, breaking the record high seven times in the last eight trading days. Some analyze that monetary policies of central banks, introduced to deal with the Covid-19 crisis, is leading gold to rally.
"Gold, which has recently started to show correlation with Bitcoin, soars past historic USD 2,000 level. Moreover, the fall of US dollar would prompt Bitcoin to continuously rally. As long as BTC stays above the USD 10,500, which turned from the previous resistance line to the new supporting line, it will remain bullish," reported Coindesk.
"USD 11,500 is the most important level to confirm a new bullish cycle of Bitcoin. Several technical metrics, including Funding Rates and Fear & Greed index, indicates an overheated rally. But, Bitcoin has room to surge to higher resistance levels at USD 14K and USD 17K, with a positive on-chain metrics, such as the number of HODLers reaching an all-time high and the fall of US dollar," penned Joseph Young on Cointelegraph.
"BTC/USD would move towards USD 14K, as long as it maintains USD 10,500 as its support," anticipated NewsBTC, citing an analysis of Tradingshot.com.
“While Bitcoin’s current move higher above USD 11,500 is another bullish sign, for now it’s primarily a move higher retest of the weekend spike high of around USD 12,100. When BTC breaks above the USD 12,500 level, the key resistance level, its next target will be the prior cycle high around USD 14K," suggested Jon Pearlstone, publisher of the newsletter CryptoPatterns.
"Bitcoin, which briefely showed a correlation with gold, is now stabilized. Bitcoin and gold have two similarities: a limited supply and low growth. If Bitcoin and gold are rising 6 times, Bitcoin price can surge USD 18K, when gold price record USD 3,000 per ounce," predicted Bloomberg, arguing that Bitcoin value is underestimated. Bloomberg also said that on-chain data and the expansion of Grayscale's Bitcoin Trust Fund made Bitcoin undervalued.
"Last week, MicroStrategy, the world's leading enterprise analysis and mobile software firm, announced to stakeholders that it will invest $250 million in 12 kinds of alternative investments or assets' during the earning call. The company plans to invest in stocks, bonds, gold and Bitcoin. And, Michael Saylor, the Chief Executive Officer(CEO) of MicroStrategy said that gold, silver and bitcoin are showing bullish sign. It makes sense to shift our treasury assets into some investments that can't be inflated away or are less likely to be inflated away," reported The Block.
Somehow missed this last week. MicroStrategy, a $1.2 billion publicly traded company is diversifying its cash holdings to include Bitcoin https://t.co/n2qjWBeG2d— Matt Walsh (@MattWalshInBos) August 5, 2020