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Peter Schiff recently pointed out that gold has been beating Bitcoin over the past two and a half years. This observation comes as gold also surpasses the S&P 500 year-to-date, shedding light on the current state of the economy.
Gold's strength lies in its stability. It is seen as a safe-haven asset, a place where investors choose to store their assets when there's market uncertainty. Over the past 2.5 years, gold has shown a steady growth in value, reinforcing its reputation as a strong and safe investment. On the other hand, Bitcoin's path has been far more volatile, with significant ups and downs. The volatility, however, presents both opportunity and extreme risk exposure.
Comparing the two, gold's price has been steadily rising, reaching around $2,329.57 per ounce, moving well above both its 50-day and 100-day exponential moving averages (EMAs), indicating ongoing strength. In contrast, Bitcoin, currently at around $69,045, has seen more fluctuation and is now facing resistance at $70,000.
Looking forward, for gold to continue its positive trajectory, it would need to maintain support above its 50-day EMA of $2,184. Similarly, for Bitcoin to regain bullish momentum, it would need to break past current resistance levels and hold above the $67,316 mark. If it fails to do so, it could see support at the 50-day EMA of around $64,000.
Bitcoin's potential for high returns attracts investors willing to take on more uncertainty, which is the opposite for gold. Gold and Bitcoin investors utilize different strategies, and it is not really wise to compare them directly. One offers an extreme risk and volatility exposure, while the second one can be used as a tool to protect against inflation in periods when the economy performs poorly.
Alex Dovbnya
