Comparison between Bitcoin and Gold
Bitcoin and gold have different investment profiles. Gold is a historically stable store of value, while Bitcoin is the first fully digitized currency with high scarcity, recognized as a store of value. The high stock-to-flow ratio of Bitcoin indicates its scarcity and reliability as a store of value. Additionally, when comparing the value of $1 invested in 2009, Bitcoin's current value is $91,748,200, while gold is valued at $2.
Gold and Bitcoin Comparison
properties of gold
🌍 Physical property🔍 Generated through scarcity and mining
💰 Traditional safe assets with a long history
Characteristics of Bitcoin
💻 Digital property with no physical substance🔒 Blockchain technology ensures scarcity
🆕 Relatively new asset class
Reasons for Bitcoin Price Decline
The recent decline in Bitcoin price can be attributed to several factors, including the selling pressure during a weak period, the inability to transfer new funds to crypto accounts due to bank system closures on weekends, and the lack of additional purchasing power among most Bitcoin holders.
Impact of the Middle East Crisis on Bitcoin
Despite the Middle East crisis, the fluctuation in Bitcoin price has been minimal due to banking system constraints preventing people in the region from purchasing Bitcoin. Actual Bitcoin users were hoping for a price decline and were eager to buy more. Additionally, Bitcoin is increasingly being integrated into the traditional financial system, and the involvement of high-frequency traders and algorithmic traders is growing.
Twitter Trading and Suspected Market Sales
The rapid sale of Bitcoin following large-scale tweets related to the Middle East on Twitter suggests algorithmic trading and actual Bitcoin sales rather than ETF trading. The timing of these events, close to the weekend, delayed the return of the market participants.
Market Outlook for Bitcoin
The market shows optimistic signals, with a proactive approach and price reflection of some predictions. Responses to geopolitical events are gradually weakening, indicating a reduced impact despite ongoing issues in the Middle East.
Reasons for Hesitation in Bitcoin Purchases
The hesitation in Bitcoin purchases is due to the belief that the Bitcoin community has already acquired a significant amount of Bitcoin and the expectation that new funds will come from Wall Street in the next 12-18 months. However, Wall Street's current reluctance to immediately purchase Bitcoin suggests a need to monitor the impact in the near future.
Future Prospects for Bitcoin
Bitcoin's price is expected to continue rising, with a limited decline and a potential increase to over $100,000 within the next 12-18 months.
If you want to trade coins, trade at a verified exchange while receiving commission benefits. This is a link that allows you to receive commission benefits by registering yourself through this link.
Technical chart analysis is one reference point. It does not have an absolute influence on investment decisions. You are responsible for your investment. Please invest carefully.
