The whole crypto market seems to be falling due to BTC’s capitulation with Gold making its way up close to $2,000.
Gold rose to its highest level since January as bond rates fell and equities markets fell, increasing demand for the commodity as a safe haven.
Stocks in the United States declined on concerns about quicker inflation and Covid-19 flareups in some countries. Technology stocks continued to fall as Bitcoin fell, sending cryptocurrency-linked equities down. After giving up early gains, 10-year Treasury yields remained stable.
Spot gold surged as much as 1.1 percent to $1,890.13 per ounce, its highest level since January 8, before falling to $1,880.10 at 10:43 p.m. in New York. Silver, platinum, and palladium all declined in price. The Bloomberg Dollar Spot Index increased after falling 0.3 percent the previous day.
Investors are investing in Gold instead of BTC, says JPMorgan
Institutional investors are returning to gold as bitcoin’s value tumbles, JPMorgan said.
For the first time in six months, institutional investors are returning to Gold. Bitcoin’s price has fallen in recent weeks due to a mix of growing inflation, stricter regulation, and ripples flowing through the online crypto community when Elon Musk declared that Tesla will no longer accept bitcoin as a method of payment for environmental concerns.
In the longer term however, the momentum indicator is still positive. “It is perhaps too early to characterize bitcoin as oversold,” JPMorgan said, adding that bitcoin futures and related products had also been affected by the drop in value of the digital asset.
