Bitcoin’s Wild Rally to $50,000 Turns Investors Away from Gold

Global investors cut gold exposure in favor of Bitcoin, but does the digital coin have any chance to cannibalize gold? Bitcoin’s (BTC) parabolic surge in 2020 will not hurt major traditional assets like gold, according to Goldman Sachs.One of the world’s biggest investment banks, Goldman Sachs reportedly sent a note to investors, reassuring its clients that Bitcoin does not pose an existential threat to gold, Bloomberg reports Dec. 18. “We do not see evidence that Bitcoin’s rally is cannibalizing gold’s bull market and believe the two can coexist,” the company wrote.Goldman Sachs still....

Gold came within a few dollars of $4K this morning, and that could light a fire under Bitcoin’s next rally. The precious metal’s surge to an all-time high reflects a global flight to scarce, inflation-resistant assets as confidence in fiat currencies continues to erode. Historically, Bitcoin ($BTC) trails gold’s moves before roaring ahead, and analysts now believe the setup for another leg higher is already in place. Meanwhile, institutional demand keeps growing. If gold and Bitcoin are climbing together, the next logical question is, where do retail investors turn for asymmetric upside in....

Analysts warn that a recovery in gold and the U.S. dollar index could negatively impact Bitcoin’s bullish momentum. Dan Tapiero, the co-founder of 10T Holdings, said weak hands have been shaken out in the gold market. This raises the probability of a gold rally in the near term, especially as it comes off of an 80-day pullback period.A rally in gold and the dollar may dampen Bitcoin priceBitcoin has seen strong momentum in the past three months, as it achieved an all-time high on Coinbase and a number of other major exchanges.Despite this, the threat of a correction for Bitcoin is a real....

While gold will always be the first choice of safety net for a purist, the millennials believe bitcoin to be the new gold or the digital gold. The two contemporary safe havens during the times of economic crisis are the representatives of tradition and technology. While gold will always be the first choice of safety net for a purist, the millennials believe bitcoin to be the new gold or the digital gold. And seems it is truly a digital age, as proved by recent bitcoin high over gold. The world is increasingly turning to bitcoin as a safe haven. Nonetheless, the demand for gold invariably....

Just because gold is losing momentum and bitcoin is gaining it doesn't mean investors are selling gold to buy bitcoin – not yet, anyway.