Bitcoin has fallen back below $40,000 hours after rallying to a new all-time high on Wednesday and hitting a low of $38,000 on Thursday.
Bitcoin (BTC) has been struggling to hold onto its support in the $40k region as the U.S. Federal Reserve Bank (the Fed) has been sending gold (XAU) up to six-week highs of $40.6k. The adoption of blockchain technology by investors has also seen a slowdown, which has led to a decrease in the adoption of BTC by investors.Bitcoin (BTC) approached its peak on the 17th. The $38,000 level in June, when Federal Reserve comments triggered a massive sell-off of gold. 1-hour candlestick chart of BTC/USD (Bitstamp). Source: TradingView
Bitcoin has escaped the fate of gold
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD to $38,400 on Thursday, missing what could have been an expected drop to $39,000. Wednesday’s Fed meeting and subsequent comments by Chairman Jerome Powell interrupted bitcoin’s upward trend and hurt the overall performance of cryptocurrencies. At the time of writing, a focal point of resistance has formed at $38,900, but a tight edge of support has remained in place. Binance’s data showed a large wall of offers at $37,000 and above. BTC/USD buy and sell orders on Binance as of 17. June. Source: Hardware/Twitter Display However, the biggest losses of the day were suffered by gold, which fell to its lowest level in six weeks following the Fed’s inflation report. The dollar got a big boost, but the combination of expected interest rate hikes and future coronavirus cuts created the perfect storm for the precious metal. At press time, the XAU/USD pair was trading below $1,800, and lost nearly $100 in the past 24 hours. XAU/USD 1-hour candlestick chart. Source: TradingView
Fight your way to
Although traditionally enemies, bitcoin and gold are still part of the portfolio recommendations of many major investment firms. Last week it was Paul Tudor Jones who gave the public advice by telling the mainstream media that handing out 5% each of bitcoin and gold is what they want right now. Related: The sale of Bitcoin has probably played a big role in gold’s appeal. Yet the golden beetles retained their position. Peter Schiff, founder of SchiffGold, accused the Fed of not understanding macroeconomic forces. The only volatile thing about these prices is that they get worse, he said on a new episode of his Peter Schiff Show. We are going from bad inflation to terrible inflation and the Fed has absolutely no idea what is happening. For Tudor Jones, Schiff, who has always been against bitcoin, issued a classic warning. Based on Powell’s extremely dovish statements at his press conference and Paul Tudor’s recent statements, Jones….. now have to go to full inflation, he tweeted. Welcome to the party, Paul. But you can’t really participate until you sell your bitcoin.
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