Advertisement
AD

Main navigation

Bitcoin (BTC) Reaches Its Lowest Level Against Gold (XAU) in Four Years. Here's What It Means

Advertisement
Sun, 19/04/2020 - 9:49
A
A
A
Bitcoin (BTC) Reaches Its Lowest Level Against Gold (XAU) in Four Years. Here's What It Means
Cover image via stock.adobe.com
Read U.TODAY on
Google News
Advertisement

Stock-to-flow model creator Plan B has noticed that Bitcoin (BTC) priced in gold (XAU) recently reached its lowest level since 2017.

However, this is not necessarily good news for the yellow metal since it's most likely going down if Bitcoin doesn't see a post-halving price rally (implying that the model holds).  

Related

Advertisement

Gold revives its luster  

After the coronavirus sell-off in mid-March, gold staged a very impressive V-shaped recovery. On Apr. 14, the traditional safe-haven asset climbed to its seven-year high of nearly $1,700. Its 20 percent rally in 2020 certainly blows Bitcoin out of the water.      

This strong performance emboldened gold critic Peter Schiff to predict that the shiny commodity will "moon" while Bitcoin, its digital alternative, will crash back to Earth.  

Related

The first test of the S2F model 

According to the scarcity-based S2F model, the annual inflation rate of Bitcoin is about to drop below that of gold (2 percent and 1.66 percent, respectively). In layman's terms, it means that BTC is about to become more scarce than gold.     

As reported by U.Today, Plan B predicted that the BTC price would increase ten times by the end of 2021 if the model turned out to be accurate. 

With that being said, the S2F model constantly faces criticism because it only takes into account the supply part, leaving demand out of the equation.  

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

A
A
A

Related articles

Advertisement
TopCryptoNewsinYourMailboxSubscribe
TopCryptoNewsinYourMailboxSubscribe
Advertisement
Advertisement
Subscribe to daily newsletter

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD