Bitcoin And Gold: Two Assets That Can't Afford To Ignore Inflation
Naeem Aslam | Jan 13, 2022 01:39AM ET
Given the fact that inflation is high in the United States, the precious metal is in a great situation. In reality, every single central bank is concerned about inflation. This is why the Fed's aggressive monetary policy isn't driving gold prices off a cliff.
In general, the dollar index rises in response to the Fed's hawkish posture, which is bad news for gold prices. Yesterday's inflation data brought more bids to the market than many expected, and this pattern is likely to continue if the inflation situation continues to go out of control.
The gold price is now trading above the 1,800 support level, which is actively monitored by traders and is also seen as a key support level. In the following days, the gold price is anticipated to reach the 1850 handle.
Bitcoin, which is naturally recognized as an inflation hedge, has seen some bids over the last few days. There is, however, more to the tale than that.
According to exchange statistics, whales are tampering with the Bitcoin supply. This indicates a large increase in Bitcoin outflow from crypto exchanges to personal wallets which is causing a lack of supply in the cryptocurrency, which, in turn, is pushing price upward.
In terms of price action, the greatest and most crucial figure for Bitcoin is support at 40K, and as long as this remains intact, which is unlikely, we may expect bigger moves for the Bitcoin price.
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