June 13, 2024

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Why bitcoin and gold are showing potential right now

Why bitcoin and gold are showing potential right now

bitcoin (BTC) is still the preferred investment for many today encryption investor. This is of course not surprising, because cryptocurrency actually started years ago with bitcoin and since then it has become the cradle of the entire crypto industry. However, it may also be wise for cryptocurrency investors to add other assets to their portfolio in addition to bitcoin. Thus, the most frequently chosen asset is undoubtedly gold.

The banking crisis favors bitcoin

The past few weeks have seen a real banking crisis. A number of major US banks, including Silvergate, Silicon Valley Bank and Signature, were flooded, sending a stock market panic.

Despite this noise, the Bitcoin price to achieve a massive increase. The world’s largest banks have collectively lost over $100 billion in value, while BTC has grown by $200 billion in market capitalization.

Meanwhile, bitcoin appears to be benefiting from the frenzy in the banking world and cautiously decoupling from the stock markets. In the past year, the correlation between Bitcoin and the traditional stock market has been very high. But it has started to decline this year. As mentioned earlier, bitcoin is already up about 66 percent this year, while the S&P 500 is up just 2.5 percent and the Nasdaq is down 15 percent.

The turmoil in the banking sector is likely to continue for some time to come. Not only in the United States, but also in Europe. Confidence in banks has simply been at an ebb and flow for a while.

Thus, this turmoil in the banking sector is a significant reason why Bitcoin is currently booming. According to analysts, the price of BTC is still very low, and confidence in Bitcoin has grown exponentially because the traditional world of finance upside down.

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Gold is an excellent addition

Not only are bitcoins doing well during this turbulent period. Historically, the precious metal gold often takes advantage of these moments. Therefore, bitcoin investors are advised to at least consider investing in gold.

Right now, investing in gold has become even more tempting with an offer from GoldRepublic for new users. They get an attractive gift of 1 gram of gold worth about 56 euros. Simply one Create an account at GoldRepublic And the purchase of gold, silver or platinum with an amount of at least 100 euros, this gold gram will be automatically credited to your account