The total market capitalization of Bitcoin [BTC] is around $150 billion. This is significantly small when compared to the market capitalization of the equity or commodity markets. Gold’s estimated market capitalization is about $8.5 trillion.
Peter Boockvar from Bleakley Advisory Group treats Bitcoin [BTC] as a market signal rather than an asset. He acknowledged the gains in the Bitcoin over the past couple of weeks; thinks that it was prominent for global currency and commodity markets.
Also Read: Bitcoin [BTC] Climbs Back Above $7800 After Swift Fall, Gold Price Surges
The surge in Bitcoin prices signaled a momentum shift as traders are looking to hedge their investments as global economic tension is increasing. However, he doesn’t yet see Bitcoin as a haven or even an asset. He said in an interview with the CNBC,
“I don’t recommend Bitcoin either up or down. I don’t really care for it in terms of an asset. I do care for it as a signaling mechanism…I don’t know to be honest. It’s still in its’ infancy.”
Gold has experienced an eight-year-long bear market and has been rejected above $1300 every time in the past last eight years. However, if the US Federal Governments decide to lower the interest rates further, which is highly probable shortly, the dollar will be weakened, which could again enhance the price of Gold.
Nevertheless, Anthony Grisanti seems to think otherwise. According to him, due to Bitcoin’s emerging nature, growing implementation, and globally feasible nature, it has a higher chance of going up. He said,
I am taking the modern currency versus the medival currency. The transactions have speeded up, also the number of transactions has speeded up… Wider implementation of Bitcoin. Hedge funds are back in to buying this thing.” He also added, “Bitcoin is not related to the US dollar. The dollar can make its move and Bitcoin can make its move; separate of the dollar.”
According to his analysis, a buy order at $7800 is looking for targets at $9100. However, stop loss must be placed near $7100. Grisanti reiterated that people are working so that Bitcoin payments will enable purchasing of a Whopper at Burger King! Soon. However, Gold has been limited in its demand due to feasibility issues.
Also Read: Bitcoin Vs Gold 2.0: Only Indians and Central Banks Are Buying Gold, Peter Schiff Accepts
Jim Luorio, on the other hand, took a bearish stance. He said,
“I think its gonna take a lot to push above $10000. Right now I clearly rather be in Gold”
The price of Bitcoin Futures at 7: 45 hours UTC on 5th June 2019 is $7810.
Which side are you on, Gold or Bitcoin? Please share your views with us.
The post Bitcoin Buy Signal Could Be Still On As CME Futures Traders Opt Either Gold or BTC appeared first on Coingape.