Following the latest increase in the interest rate by the Federal Reserve, the price of gold, on Wednesday, responded to the development by rising by 0.9%, hitting an all-time of $2,080.72 per ounce. Bitcoin bulls have their sights set on the $30,000 mark. Following the Federal Reserve’s decision to raise interest rates, gold prices rose sharply as investors flocked to the precious metal as a “haven asset.”
It was gathered that after Bitcoin declined on May 2, it attained a new price mark, trading at $26,737 at the time of writing. Bitcoin enthusiasts, however, are still confident that the cryptocurrency will eventually surpass the $30,000 threshold despite the current price decline.
Many observers have started taking note of the current strong market sentiment, with Bitcoin seeing an increase in demand from institutional investors and businesses. Another encouraging development for Bitcoin is the recent increase in gold prices. Both gold and bitcoin are seen as haven assets by investors who want to protect themselves from inflation and economic unpredictability.
Meanwhile, the CEO of Eight, Michael van de Poppe, in response to the decision by the Federal Reserve, lashed out at the organization, calling the decision “the biggest joke” ever made. He has also criticized their latest statement claiming that the banking industry is at its strongest stage – while according to De Poppe, it is actually at its weakest stage.
The current increase in gold prices also results from the Federal Reserve’s decision to raise interest rates by 25 basis points. The decision was made amid severe economic instability in the banking industry, and many analysts anticipate increased market volatility in the upcoming weeks and months.
Despite New Price, Investors Skeptical About Gold’s Performance, Eyes Cryptocurrency
Despite the recent increase in gold prices, some analysts are still uneasy about the future of the precious metal. Numerous investors are looking for alternative assets like Bitcoin and other cryptocurrencies due to the enormous issues the world economy is currently facing.
Industry spectators, on their part, commented that industry gold has always been considered a haven asset, predicting that fewer investors may start recognizing how vulnerable its value is to market changes. Analysts have pointed out several benefits Bitcoin has over gold, which include mobility, division, and ease of transfer, which they claim is the reason for the rush by investors.
Industry spectators believe that the current increase in gold prices is good news for both assets. They believe that investors trust Bitcoin to offer more compelling investment opportunities because of its distinctive features – and can’t wait to see how these two safe-haven assets fare in the upcoming months as the global economy continues to experience difficulties.