An investor puked about 11,000 gold futures contracts into the market recently. This increased the supply in the market and thereby sent gold’s price tumbling down to its lowest since January. Meanwhile, there was a spike in the price of Bitcoin.
Gold Puked and Bitcoin Spike
As the price of Gold tumbled to its lowest since January, Forbes posted an article titled “Bitcoin Is The New Gold” the same day. This also coincides with a spike in the value of Bitcoin. Well-renowned crypto influencer, Joseph Young took to social media as he tweeted that the entire market is seeing major greens with bitcoin’s price rising by almost 3%. This took place after the Bitcoin price has been lingering in the range of $5,000 and 5,050 for a while.
In response to Young’s tweet, Ran NeuNer, a well-known crypto expert and the founder and CEO of Onchain Capital, a crypto investment and advisory business, tweeted that “Sorry it was me. I placed my buy orders..”
Meanwhile, though it may seem like a sarcasm, there could be a correlation between the investor that puked Gold and the sudden spike of Bitcoin. Obviously, this brings forth the debate of Bitcoin being the digital gold. If it is possible for an investor to desert gold for Bitcoin, hence Bitcoin could be the Gold that its dominance will become prevalent with time.
Founder and partner at Morgan Creek Digital, Anthony Pompliano, commented regarding this matter that “Venezuela’s request to withdraw its own gold of worth $1.2 billion from the Bank of England getting denied is the reason we should turn to bitcoin and the cryptosystem of financial transaction. This is another down for the Bankers and the banking system not letting the individuals to access their wealth.”
Bitcoin, the Digital Gold
The probable reason for a dump of gold for Bitcoin is summed up in the words of the founder and chief operating officer of MarketOrder Sukhi Jutla; he noted that “Bitcoin is still going strong after a decade and has proven itself to be a real and worthwhile use case. I believe it does have the potential to become digital gold.” Jutla stated this while replying to the question of bitcoin becoming the digital gold recently.
Perhaps, Bitcoin becoming the digital Gold is a subject of time. The prospects thus far have proven this.