Fake News: Analyst Falsely Claims Bitcoin Price Decline Will Spark Gold Rally

gold bars bitcoin price

Stephen Innes, the head of trading for the Asia Pacific region at foreign exchange (FX) trading giant Oanda, has said that the plunge in the value of bitcoin and crypto will lead to a surge in the price of gold.

In an interview, Innes said:

“There’s still a lot of people in this game. If Bitcoin collapses, if we start to see a run down toward $3,000, this thing is going to be a monster. People will be running for the exits. I don’t think coins are going to be anywhere near as attractive as some of the other cross-asset plays. Gold prices are going to jump considerably higher and there’s an inverse relationship we’re starting to see with gold and coins.”

Is Gold a Better Investment Than Bitcoin?

Since 2011, gold has consistently declined in value, from $1,800 to $1,200, by more than 33 percent. In contrast, since 2011, Bitcoin has increased from $30 to $4,200, up 13,900 percent in the past seven years.

Coinbase 2

gold price bitcoin

According to Innes, an inverse correlation has been spotted between cryptocurrencies and gold. He stated that as major cryptocurrencies like Bitcoin drop in value, the price of gold rises.

However, as shown in the yearly chart of gold, the price of gold has not increased in the past year while the cryptocurrency market suffered its fifth biggest correction to date. In fact, since January, the price of gold has dropped from $1,360 to $1,220.

gold price bitcoin

The narrative that the drop in the price of cryptocurrencies leads to an increase in the price of gold is wildly inaccurate, as the data demonstrates that there exists no correlation between the two assets.

While cryptocurrencies have fallen by a significantly larger margin that gold, the precious metal has also fallen substantially by its standard.

Even if the long-term trends of gold and Bitcoin are considered, Bitcoin has consistently outperformed gold since it was created in 2009. Hence, the argument that gold will benefit from Bitcoin approaching $3,000 is false, given that gold has clearly not been affected by the price trend of BTC.

Gold Versus Bitcoin

bitcoin price vs gold price
Bitcoin Price (Blue) vs. Gold Price (Red) over the past 5 years. | Source: TradingView

A recent survey conducted by Ron Paul, a retired politician who served as the US Representative for Texas’s 14th congressional district, demonstrated that the majority of millennials prefer Bitcoin as a long-term investment over the U.S. dollar and gold.

For millennials, the motive behind the preference of Bitcoin over gold is strikingly obvious. The trend of the financial market is moving towards digitalization. To trade, purchase, or sell gold bullion, large financial institutions and banks are involved, which millennials generally do not favor, as many studies have shown.

For instance, the London bullion market (LBMA), has a clearing system in place to settle orders that is operated by a corporation called LPMCL which is owned and managed by the five banks including HSBC, ICBC Standard Bank, JPMorgan, Scotiabank, and UBS.

Amongst experienced investors, gold could continue to be a viable store of value especially in periods of uncertainty and volatility. But, amongst millennials, the trend of financial technologies (fintech), blockchain, and crypto is expected to be sustained in the long run.

Featured Image from Shutterstock

Get Exclusive Crypto Analysis by Professional Traders and Investors on Hacked.com. Sign up now and get the first month for free. Click here.Advertisement

Fake News: Analyst Falsely Claims Bitcoin Price Decline Will Spark Gold Rally 1
blank
About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

blank

E-Crypto News Executive Interviews


blank

bitcoin
Bitcoin (BTC) $ 38,806.00
ethereum
Ethereum (ETH) $ 2,516.49
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 324.30
cardano
Cardano (ADA) $ 1.30
xrp
XRP (XRP) $ 0.720024
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.199673
polkadot
Polkadot (DOT) $ 17.31
binance-usd
Binance USD (BUSD) $ 1.00
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 38,806.00
ethereumEthereum (ETH)
$ 2,516.49
tetherTether (USDT)
$ 1.00
bitcoin-cashBitcoin Cash (BCH)
$ 533.96
litecoinLitecoin (LTC)
$ 138.89
bitcoinBitcoin (BTC)
32.700,77
ethereumEthereum (ETH)
2.120,58
tetherTether (USDT)
0,842673
bitcoin-cashBitcoin Cash (BCH)
449,95
litecoinLitecoin (LTC)
117,04
bitcoinBitcoin (BTC)
27,907.96
ethereumEthereum (ETH)
1,809.77
tetherTether (USDT)
0.719166
bitcoin-cashBitcoin Cash (BCH)
384.01
litecoinLitecoin (LTC)
99.88

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

blank
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
blank
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021
Crypto Scams On The Rise As Market Enters Bull Cycle
Crypto Scams On The Rise As Market Enters Bull Cycle
December 22, 2020
Harpreet Singh Sahni perpetrated the Plus Gold Union Coin (PGUC) scam
Sydney Concert Promoter Harpreet Sahni Involved In $50M Crypto PGUC Scam
November 2, 2020

Blockchain/Cryptocurrency Questions and Answers

Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021
Solana
What Is Solana (SOL) And How Does It Work?
June 26, 2021
blank
What Is Plethori Platform And How Does It Work?
June 12, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin38,702 0.04 % 2.49 % 3.81 %
Ethereum2,516.8 0.75 % 3.13 % 12.85 %
Tether1.000 0.10 % 0.13 % 0.40 %
Binance Coin323.36 0.05 % 3.35 % 6.73 %
Cardano1.300 0.60 % 1.80 % 3.96 %
XRP0.7196 0.35 % 4.63 % 15.32 %
USD Coin1.000 0.02 % 0.02 % 0.72 %
Dogecoin0.1995 0.32 % 3.47 % 3.19 %
Polkadot17.30 0.43 % 5.26 % 24.08 %
Binance USD1.000 0.14 % 0.00 % 0.51 %

bitcoin
Bitcoin (BTC) $ 38,718.00
ethereum
Ethereum (ETH) $ 2,537.19
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 325.02
cardano
Cardano (ADA) $ 1.36
xrp
XRP (XRP) $ 0.721274
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.199507
polkadot
Polkadot (DOT) $ 17.62
binance-usd
Binance USD (BUSD) $ 1.00