Analytics / Forex and Crypto News
Amid the deepening financial crisis, the economist Peter Schiff compared the profit of Bitcoin and gold. He concluded that investors who purchased Bitcoin at its maximum price in 2020 received a 70% loss, while investors who bought gold at its peak received a loss of only 14%.
But it seems that Peter Schiff ignored some facts. In March, Bitcoin hit a low of $3850. But then it rose to a maximum of $7139, which is 60.9%.
Gold reached a minimum of $1451 and then rose to a maximum of $1644 which is only 13.4%.
The main driver of rising prices for Bitcoin and gold was the Coronavirus. Pandemic collapsed bond and the stock market. In a panic, Investors sold everything from stocks to bonds to save the money. The US Congress approved an emergency package of $2 trillion.
While gold reached an 11-year high after the Fed's decision, Bitcoin has already shown its reaction, showing an increase of 22%.
Today, Bitcoin added 8%. This suggests that Bitcoin is superior to gold even in the short term.
Investor Raul Pal believes that Bitcoin's profit is associated with risk. The higher the amount of investment risk, the higher the income. Investors decided to invest in an extremely volatile cryptocurrency market, as they hoped to compensate for the losses they suffered in traditional markets, including stocks. Investors choose Bitcoin and other cryptocurrencies to receive cash liquidity in a short time. But this is a short-term phenomenon. As soon as the panic ends, Bitcoin's volatility will decrease. Speculators will leave the market and only HODLRes will remain.
On the weekly chart, Bitcoin begins to form a third bullish candle in a row, which indicates the beginning of Bitcoin's exit from the bottom. Bitcoin can have two scenarios. The price may fall to the $4000 area to activate the bulls and then rise to the $7000 area soon and $9000 in the medium term.
In another case, Bitcoin could rise above $7000 to test a 50-week moving average as an intermediate target.
During November, ICO-projects sold 416K ETH. This is the largest figure since the summer, reports Trustnodes.
According to Santiment, in August, ICO startups sold only 100,000 ETH. In September, sales of digital currency increased significantly, reaching 300 thousand ETH. In Nov