Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Bitcoin News & Updates => Topic started by: Cristiano on May 07, 2021, 01:54:47 PM
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Bitcoin was trading sideways on Friday, even as gold rallied to three-month highs amid a renewed drop in U.S. real (inflation-adjusted) bond yields.
The cryptocurrency was changing hands for $56,500 at 11:00 UTC, continuing a week-long consolidation in the range of $52,000 to $59,000, according to CoinDesk 20 data.
Gold, a traditional store-of-value asset, rose to $1,820 per ounce, the highest level since Feb. 16. The move came a day after the U.S. 10-year real yield fell to a three-month low of -0.88%, per data from the U.S. Department of Treasury.
“Lower real rates boost gold which now trades below fair value,” ByteTree CIO Charlie Morris tweeted Thursday.
The collapse in real yields was in large part responsible for risk-taking across financial markets last year, as noted by MarketWatch. In addition, some institutions poured money into bitcoin amid fears over inflation. As such, some crypto market participants became more cautious in late February and early March 2021, after a brief spike in real yields to -0.57%.
However, the latest bout of weakness in the inflation-adjusted 10-year yield is struggling so far to push bitcoin higher.
Since mid-March, the yield has dropped by 30 basis points, marking a steady increase in inflation-adjusted loss for bond investors. Bitcoin registered a moderate decline of 1% during that time-frame, while gold has responded positively, rising from $1,700 to over $1,800.
More information (https://cryptonews.net/en/news/bitcoin/618698/)
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The sentiment of traders and investors can be shifting from one asset to another. And with Bitcoin as one of their choices, gold will never be left out, actually. What is happening right now that Bitcoin is moving sideways is the confirmation of what I am saying before that gold and Bitcoin will be co-existing peacefully and one will not be killing the other one. Traders and investors go where they think they can make more money as fast as possible, that is the truth. Of course, this ideas can be unthinkable when one is merely doing the HODL thing.
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The topic should be locked due to another thread with the same content and source.
https://www.altcoinstalks.com/index.php?topic=209987.0
Please, avoid doing the same topic otherwise be deleted. ;)
https://www.altcoinstalks.com/index.php?topic=192263.0