Cryptocurrency News

Gold reached four-month high after crypto crash

After the mid-May sell-off in the crypto market, the price of gold has improved significantly.

Gold prices continued to rise on Tuesday as well, Hitting EDT at 3:00 pm, $ 1,887 per ounce, according to Trading View figures.

Last week, gold hit its highest price level since January 8 at $ 1,889, a four-month high after gold prices dropped to $ 1,681 in early March. At the time of writing, spot gold is trading at $ 1,882, an increase of approximately 0.1% over the past 24 hours.

Spot Gold Year-to-Date Chart. Source: Trading View

The gold market grew rapidly, with a major decline in cryptocurrency markets that began on May 12. After that Upper layer According to data from CoinMarketCap, there was a steady decline in total crypto market capitalization, up from $ 2.5 trillion, which eventually fell below $ 1.3 trillion on Sunday.

Total Crypto Market Cap 30-Day Chart. Source: CoinMarketCap

According to Bob Haberkorn, a senior market strategist at brokerage firm RJO Futures, gold prices may rise. Held responsible For a weaker dollar with lower United States Treasury yields. “If the data comes much better than expected, it will probably be a slowdown for gold because the Fed taper will likely be sooner rather than later,” he said.

Several financial analysts have drawn parallels between the trends in the crypto and gold markets, with experts at JP Morgan suggesting last week that large institutional investors were dumping bitcoins (B T c) In favor of gold.

According to the bank, the new trend reversed the market’s major uptrend Bitcoin price above $ 4,000 In mid-April. At the time of writing, bitcoin is trading at $ 37,111, rebounding after touching $ 30,000 last Wednesday.