Stagnation Amid Middle East Conflict, Is Bitcoin's Volatility Comparable to Gold?
Analysts doubt whether Bitcoin can be categorized as a safe-haven asset because investors prioritize traditional assets, especially gold. The price of the precious metal nearly reached a record high of US$3,450 per ounce on Monday (06/16) as tensions rose in the Middle East.
IG Markets analyst Tony Sycamore stated that Bitcoin is still traded more as a risky asset similar to U.S. equities rather than as a safe haven, as reported by Cointelegraph.
Gold typically rises slowly, but the precious metal has already increased by 30% since the beginning of the year, spurred by U.S. President Donald Trump's trade tariffs and the escalation of military actions in the Middle East on June 13.
In comparison, Bitcoin has risen 13% year-on-year. Bitcoin is also nearing its all-time high, trading 5.3% below the peak of US$111,800 on May 22.
"In this case, with U.S. equity futures rebounding strongly from Friday's sell-off, there is room for Bitcoin to move higher and catch up with U.S. equity futures," said Sycamore.
However, Sycamore mentioned that if Bitcoin holds above support at US$95,000 to US$100,000, he would anticipate a retest of the record high of US$112,000 before moving towards the US$116,000 and US$120,000 regions.
#CryptoStocks $BTC
Analysts doubt whether Bitcoin can be categorized as a safe-haven asset because investors prioritize traditional assets, especially gold. The price of the precious metal nearly reached a record high of US$3,450 per ounce on Monday (06/16) as tensions rose in the Middle East.
IG Markets analyst Tony Sycamore stated that Bitcoin is still traded more as a risky asset similar to U.S. equities rather than as a safe haven, as reported by Cointelegraph.
Gold typically rises slowly, but the precious metal has already increased by 30% since the beginning of the year, spurred by U.S. President Donald Trump's trade tariffs and the escalation of military actions in the Middle East on June 13.
In comparison, Bitcoin has risen 13% year-on-year. Bitcoin is also nearing its all-time high, trading 5.3% below the peak of US$111,800 on May 22.
"In this case, with U.S. equity futures rebounding strongly from Friday's sell-off, there is room for Bitcoin to move higher and catch up with U.S. equity futures," said Sycamore.
However, Sycamore mentioned that if Bitcoin holds above support at US$95,000 to US$100,000, he would anticipate a retest of the record high of US$112,000 before moving towards the US$116,000 and US$120,000 regions.
#CryptoStocks $BTC
