gold price, continues to rise with the ongoing conflict between Russia and Ukraine, which shows that there may be a response to the stories of safe haven for investment. The conflicts between Russia and Ukraine have been going on for 12 days and the conflicts do not decrease despite the talks. Gold, a traditional safe haven, rose in price for the first time in months to $2,000 as a result of instability. Bitcoin (BTC), on the other hand, remains in a downtrend.
Gold is currently trading at just under $2,000 (global price), but the price recently peaked at $2001.06, albeit quickly. Gold was last traded at this level in August 2020.
As gold prices skyrocket, things are not going well for risky assets. Bitcoin (BTC) It has lost about 13.5% in the last six days and is now trading at just under $38,000. In other words, we’re back to levels where the cryptocurrency was traded before the war started, and it will be pretty interesting to see how prices evolve at that rate.
Could Investors Be Carrying Their Assets To Gold?
Gold, the former safe-haven for investments, seems to be making a comeback, which was previously the position of Bitcoin. The stock market is also going through tough times. DOW futures fell 1% in premarket hours Monday, as did the S&P 500 and the Nasdaq.
Mike McGlone, chief commodity strategist at Bloomberg, shared on his Twitter account that he predicts Bitcoin (BTC) to drop to $30,000 once again.
#Bitcoin May Revisit $30,000, But What of the #stockmarket? Down about 2% on Sunday morning 8am EST from Friday’s close, Bitcoin is indicating another rough week for risk assets – pic.twitter.com/FEj7hLQ08j
— Mike McGlone (@mikemcglone11) March 6, 2022
According to McGlone’s chart, Bitcoin and Nasdaq 100 futures are currently moving in the same direction and both are currently bearish. Implying that Bitcoin and the stock market are related, the analyst has stated this before.
BTC has been falling steadily since Tuesday, March 1. However, it has lost 10.24% of its market capitalization to this morning from $44,031 to $39,522 since its March 3 drop.
As gold prices rose, people could change their minds and move on to the century-old asset. With Russian investors being excluded from many platforms, it seems quite possible for them to invest in gold to recover their investments as the Russian Ruble has dropped significantly.
On Monday, oil prices also rose around 10% in international markets as the US and Europe threatened a ban on Russian products and delays in Iran talks, creating a major stagflation shock for global markets.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.