Bitcoin’s Mainstream Media Mentions in December Beats Gold
A weaker dollar, investors betting on more US stimulus, and Britain and the EU appearing to be close to clinching a trade deal is pushing the markets higher.
Trading around $1,875, up from the $1,760 bottom at the end of November, gold is enjoying an uptrend on the back of a weaker dollar, which is currently hovering around 90.
Also, investors are betting on more US stimulus, as President Donald Trump urges for $2,000 stimulus checks, calling the $600 direct payment a “disgrace,” which has found support from House Speaker Nancy Pelosi and other Democrats as well. Margaret Yang, a strategist at DailyFX said,
“Gold prices are riding a near-term bull trend, propelled by a weaker dollar and a new strain of coronavirus that could derail the (economic) recovery, hinting at further stimulus ahead.”
However, precious metals’ 23% year-to-date performance is nothing on digital gold’s more than 220% gains this year.
Bitcoin is simply crushing in 4Q20, having made a new all-time high at $24,300 this past weekend and still holding on strong to its $23k level.
— Michael Saylor (@michael_saylor) December 23, 2020
Besides money printing, the reports of Britain and the European Union appearing to be close to clinching a trade deal are pushing the US dollar down and lifting the pound and euro up. Jeffrey Halley, a senior market analyst at OANDA, said in a note,
“The overnight rally leaves gold parked in the middle of its one-week range, lacking the drivers and momentum to attempt a directional move either way.”
Gold’s ranging and bitcoin’s explosion has pushed people to BTC which continues to enjoy a strong uptrend, thanks to all the institutional demand.
As we reported, Christopher Wood, global head of equity strategy at Jefferies cut down the gold exposure by a whopping 50%, for the first time in several years, in favor of BTC.
Interestingly not just in terms of price performance, but Bitcoin has also been seeing more mentions than gold in mainstream media financial publications in the last month of 2020. BTC mainstream media mentions are up more than 1,000% since January, as per The Tie.
However, much like some skeptics, Shark Tank’s Kevin O’Leary sees gold as a hedge against inflation and says it won’t be replaced by Bitcoin anytime soon. But the chairman of O’Shares ETFs said that the digitization of America is here to stay.