CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$46,586.00
  • ethereum
    ETH$1,447.94
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » Smart Money Pushing Bitcoin and Gold Price Amid Infinite QE

    Smart Money Pushing Bitcoin and Gold Price Amid Infinite QE

    Author: Anthonia Isichei

    Last Updated Jul 28, 2020 @ 15:28

    Experts suggest that the current increase in the price of Bitcoin and gold might be driven by institutional investors who expect infinite quantitative easing (QE).

    With gold setting a new all-time high (ATH) and Bitcoin (BTC) surging past $11,000 for the first time in over 11 months, market observers say investors are focusing on haven assets while governments prepare for another round of economic stimulus activities.

    Market Uncertainty Acting as Tail Winds for Bitcoin and Gold

    As of the time of writing, Bitcoin — the largest crypto by market capitalization — has set a new 2020 price high, and gold broke its all-time high.

    Much of the recent price revival for these haven assets has come over the last few weeks, with investors worried about the health of the equities market. Tweeting on Monday, ShapeShift CEO Erik Voorhees predicted that BTC and gold will continue to see gains in the coming months.

    According to Voorhees, both assets constitute “complementary pieces of the future financial system.” Indeed, investors worried about market uncertainties, and currency debasement could see Bitcoin and gold as viable hedges.

    BTC and gold prices seeing a bullish advance is also coming at a time when major economies are gearing up for further stimulus payments owing to economic slowdowns occasioned by COVID-19. As previously reported by CryptoPotato, EU leaders agreed on a $2T spending plan earlier in July, with almost half of the funds budgeted for coronavirus recovery plans.

    For former hedge fund manager Jim Cramer, the current gains for precious metals indicate goldbugs expecting infinite quantitative easing (Q.E.). Appearing on CNBC on Monday, Cramer argued:

    “Gold is to me a sign there will be no vaccine. The equity market is very hopeful that there will be a vaccine, but the gold market thinks that there won’t be and the gold market thinks we’ll be printing money forever.”

    Weakening U.S. Dollar

    The prospect of further money printing by central banks likely means a continued currency debasement with the U.S. Dollar already at a two-year low against the Euro. The U.S. equities market is also experiencing some decline despite sustained cash injections from the Federal Reserve.

    As a result, Bitcoin is beginning to see some decoupling from U.S. stocks. Such a trend, if continued, might revive the BTC haven asset narrative, especially if the likes of the S&P 500 and the Dow Jones fail to post any significant recoveries in the coming weeks.

    Recent reports of multiple vaccine trials reaching final-stage testing might provide a trigger for U.S. stock market gains. According to The Guardian, U.S. public health expert, and member of the White House coronavirus taskforce, Anthony Fauci says a vaccine for the deadly virus might be available in the fall.

    Enjoy reading? Please share:
    Facebook Twitter LinkedIn Telegram
    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • bitcoin_gold
      You Want To Predict Bitcoin's Price? Look At Gold
    • bitcoin_gold
      Bitcoin Price Could Triple Even After a Modest Switch From Gold, JP Morgan Says
    • filb2
      $14,000 By End of 2020 a Reasonable Target for Bitcoin's Price: Filb Filb in Exclusive Trader's Digest
    Read more on: Bitcoin Federal Reserve Gold United States

    About The Author

    Anthonia Isichei View more posts by this author

    Anthonia is a fintech writer who has been involved in the crypto space since 2017 covering developments across regulations, adoption, and several other aspects of the Industry. When not neck-deep in the crypto news cycle, Anthonia spends her free time globetrotting and playing video games.

  • bitcoin
    BTC$46,586.00
  • ethereum
    ETH$1,447.94
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    ADVERTISEMENT
    pionexb
    2local
    Bitcoin Editorials
    What is Dogecoin (DOGE)? 5 Facts About the Crypto That Started as a Joke 

    What is Dogecoin (DOGE)? 5 Facts About the Crypto That Started as a Joke 

    The Laser Eyes Meme: Not a Coincidence That This Marked a Local Top for Bitcoin (Opinion)

    The Laser Eyes Meme: Not a Coincidence That This Marked a Local Top for Bitcoin (Opinion)

    What Are the Risks of Governance Tokens? (Opinion)

    What Are the Risks of Governance Tokens? (Opinion)

    The Bitcoin Bubble Effect: Yes, We Are in a Very Early Stage (Opinion)

    The Bitcoin Bubble Effect: Yes, We Are in a Very Early Stage (Opinion)

    Will Bitcoin Price Rally Continue In 2021? 8 Key Considerations

    Will Bitcoin Price Rally Continue In 2021? 8 Key Considerations

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!