Bitcoin Price Could Hold at USD 10,000 as Gold Nears ‚Turning Point‘ for Stocks


The enormous gains in the stock markets despite the dire economic consequences of the coronavirus could soon be a thing of the past, an analyst warns.

In a Sept. 4 tweet, Mike McGlone, senior commodities strategist at Bloomberg Intelligence, said that gold could soon be in the spotlight when markets reach a „tipping point.

Satoshi’s legacy and influence in the world of cryptomonies will be discussed at a virtual meeting

Fiat markets may soon face doomsday
„In a bullish battle, we see greater potential resistance that favors the #gold over the #Nasdaq,“ he wrote.

„The enigma of monetary and fiscal stimulus that lifts most assets may be approaching a tipping point, where the growing certainty of QE and budget deficits further cement the foundation of gold.

McGlone referred to the main market phenomenon of the last six months: stocks continue to rise, even reaching new highs, while central bank interventions in the economy reach unprecedented levels.

Previously, analysts even postulated that the value of the stock markets no longer matters because of the degree of manipulation since March.

Gold and Bitcoin (BTC) have benefited from fiduciary uncertainty since July.

Bloomberg: Bitcoin Could Reach $500,000 or Fall to Zero

Bitcoin and Gold Contrast with New Dollar Pressure

Another curious counterpoint comes in the form of the US dollar currency index (DXY), which recently hit two-year lows. For gold fan Peter Schiff, the outlook for the precious metal is equally favorable thanks to the geopolitical changes resulting from this USD weakness.

Commenting on news that China plans to reduce its exposure to the dollar, Schiff said that, as before, the average American would end up paying the bill.

„If true, this is very significant,“ he tweeted.

„In fact, my feeling is that China will reduce its exposure much more. That means the Fed is going to need a much bigger printer and Americans better be prepared to actually pay! „

Schiff added that during this week’s setback, gold beat Bitcoin, which experienced more pronounced losses. However, the new strength of DXY may still mean problems for optimism about both assets.

Bitcoin Market Index Returns to ‚Fear‘ on 91st Anniversary of 1929 Downturn
Bitcoin vs. gold realized correlation 6-month chart

Earlier, Cointelegraph reported disturbing similarities between today’s environment and that of 1929, the year of an infamous Crypto Trader accident that celebrates its 91st anniversary on Friday.