But gold has recently lost its luster due to bitcoin whose price has gone up like crazy. As a result of this ‘new boy’, gold has recorded a price decline of up to 9% this year. But bitcoin rose to 70% in early 2021 and even touched US $ 50,000 per chip.
CNN said that the gold price, which had rallied at the end of last year, had indeed occurred because the market was afraid of the lockdown in many countries. The lockdown is said to have paralyzed the global economy.
The emergence of bitcoin, especially supported by many large companies such as Tesla and MicroStrategy, made the currency created by Satoshi Nakamoto soar.
Swissquote Senior Analyst Ipek Ozkardeskaya said investors actually need guarantees or protection of assets from inflation. “But bitcoin does not offer that,” he was quoted as saying by CNN Business, Wednesday (3/2/2021).
AvaTrade Chief Market Analyst Naeem Aslam said there is a potential for gold prices to rise again. This is because there is a plan to approve the stimulus package in the US House of Representatives.
Director of Market Strategy for Algerian Brad Neuman said the rebound in gold prices could not be in line with the fall in the price of bitcoin.
Neuman said that even though inflation is often accompanied by an increase in interest rates. The problem is that interest can rise suddenly and make a loss or profit.
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