Gold rises to ATH because of banking crisis, Bitcoin battles $30k
Last Updated on 5 September 2023 by CryptoTips.eu
The banking crisis that started in March keeps dragging along. Several regional banks in the United States are seeing their stock prices dive while large investors try to spread their risk and diversify in commodities.
Gold is climbing to a record high. Bitcoin is also benefiting from the banking crisis but struggles to surpass the $30k level. Much will depend on next week. If new banks were to collapse, both gold and Bitcoin could go even higher.
#Gold stocks are hitting new 52-week highs today as #bank stocks are hitting new 52-week lows. This is not the end of this rotation, but the beginning. The stocks that lived by the bubble are dying as the air comes out. Old fortunes will be lost and new fortunes will be made.
— Peter Schiff (@PeterSchiff) May 4, 2023
As expected, both the Fed and the ECB raised interest rates again this week by a quarter of a percent, but both also hinted that these hikes would likely be the last.
March and May
March’s banking crisis (Silicon Valley Bank, Credit Suisse and Signature Bank) is clearly not having the same effect as May’s (First Republic Bank and probably also PacWest and some others in the coming weeks). In March, Bitcoin was the clear winner of the banking crisis, this time it is gold that rises to an all-time high.
John Reade of the World Gold Council said the banking crisis and a weaker dollar both pushed gold higher.
“There’s push and pull from different sides but what we’ve yet to see unleashed is widespread financial investment in gold,” said John. “It should from here certainly take it to the all-time high. The question is can it go on from here and make significant gains.”
Get your money from banks and buy hard assets like Gold & Silver. Buy #Bitcoin and #Crypto and wait.
— Michaël van de Poppe (@CryptoMichNL) May 4, 2023
A bank isn't a bank, you're lending your money to them so they can take excessive risks.
Adapt.
The decade of Crypto and Commodities.
Other central banks are also buying gold amid concerns about the US dollar, the Financial Times reported yesterday.
Slowing down
Bitcoin, meanwhile, is struggling to overcome the $30k price point. Although the largest digital currency still posted a gain of more than 75% for the year, growth seems to have slowed down recently.
If next week the banking crisis makes new victims in the United States, it will be interesting to see if Bitcoin can clearly break above $30,000.
strelok / Depositphotos.com
