Cryptocurrency

what is the gold a tail wind for bitcoin?

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In the midst of the global economic uncertainty, this week the ounce of gold reached a new historical maximum, reaffirming the role of this asset as a store of value. This Thursday, August 6, the gold amounted to 2.081 per ounce and then withdraw up to $ 2.035.

The rebound in gold in recent months is a reflection of the economic crisis caused by the pandemic Covid-19, as well as the monetary and fiscal policies that can have a negative impact on the dollar, in the medium and long term.

How does this rise of gold with the price of bitcoin? In the context of the current crisis, bitcoin has responded in a similar manner to gold on several occasions – This could be interpreted as showing that investors, driven by economic uncertainty and a dollar vulnerable, also seen in bitcoin attributes of a store of value.

The prices of bitcoin and gold have already shown high degree of coincidence this year, as reported Breaking News last April. This Thursday, six of August, in data Skew, correlation to 30-day between these two assets reached 68.7 per cent, as can be seen in the following chart:

The effective correlation to 30-day between the prices of bitcoin and gold reached a maximum last Thursday. Source: Skew.

But beyond this similarity between the evolution of the two price curves, the analyst of Bloomberg, Mike mcglone enjoy the festivities, it introduces a hypothesis interesting. The price of gold and the increase of the active addresses daily of Bitcoin are two indicators that might impact on the price of the criptomoneda leader, says the analyst.

Our analysis shows that the addresses used, and the price of gold are among the best indicators for an prospect of the price of bitcoin. It would take a sustained drop in those markers to make it happen something similar with bitcoin.

Mike Mcglone Enjoy The Festivities, Bloomberg Intelligence.

Effectively in the following graphic you see to bitcoin according to these two variables

It can be seen that, in 2020, bitcoin (white sails) is influenced by the active addresses of Bitcoin (blue) and the gold price (gold). Source: Bloomberg Intelligence.

Other fundamental indicators of Bitcoin reaching new highs, as the active addresses, both for small balances (for example, lower than 0.01 and 0.1 BTC) as in the case of addresses with a balance greater than 1,000 BTC. This, according to the figures of Glassnode.

The fact that the three categories have reached historical highs, involves the growth of adoption in the various segments of users of Bitcoin.

Bitcoin came on Thursday to the us $ 12,000 but declined this Friday and now fluctuates around the $ 11.990.

The tweet highlights of the week

The control of the supply of bitcoin has been moving steadily to entities with balance sheets smaller, he says in this tweet, the company’s analysis of blockchain, Glassnode.

The percentage of the supply in the hands of entities that have less than 10 BTC, grew 5.1% to 13.8% in 5 years, while the percentage of BTC in the hand of entities with funds of between 100 and 100,000 BTC declined 62.9% to 49,8% in the same period.

Criptonoticias performed an analysis of this change in the distribution of the tenure of bitcoin, which was interpreted by some analysts as “very healthy” for the criptomoneda.

Prediction adjusted

The well-known analyst of markets Willy Woo assured that we are already in the beginning of the main phase of a bull market for bitcoin. Breaking News deals with the model of Woo, published on the 27th of last June, which warned on that occasion that the model suggested a run to the upside, which could be commenced a month after.

For the analyst, there are indications as to the indicator of the relative strength of 365 days (ROI, for its acronym in English) which shows that the compression in the initial phase of the upward cycle is about to be completed, once that is exceeded the resistance of us $ 11,000. Among other indicators that are favorable to bitcoin in these moments, Woo mentioned the tape of the difficulty of the miners (MDR-tb) and the maximum current of the mempool, the memory where is stored the transactions pending confirmation.

The supply “approximate” ETH

The provision of a criptomoneda is a key variable to calculate its value in the market. This Friday it became clear, through discussions on Twitter, the discordance between various sources on the supply of ether (ETH).

The amounts reported by the major browsers blocks and sites like CoinMarketCap or Messari throw different versions of the supply and with differences of up to 3%. At the time of drafting this note, for example, CoinMarketCap points out that there are 112.107.128 ETH cast, while Messari reports 111.536.574 ETH.

Apart from the bitcoiners that highlighted the transparency of Bitcoin relative to its supply, available through a specific function of your API, it caused surprise the response from Vitalik Buterin, founder of Ethereum, to a question about why his community did not seem to mind these discrepancies. “Because we know approximately what it is (the supply) according to the rules of the protocol…”. This reaction, somewhat carefree Buterin, fuelled the discussions on Twitter and other social networks.

About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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