Bitcoin is approaching $64,000 after rising about 7% since last week. Gold is also seeing a surge in demand for various reasons globally, including economic uncertainty. Meanwhile, analysts are monitoring the effects of the Federal Reserve’s recent interest rate cuts.
With festive demand in places like India and the rise of spot Bitcoin ETFs, there is growing optimism about gold and Bitcoin. However, Bitcoin’s relationship with gold remains weak.
Bitcoin Gains Strength After Interest Rate Cut
Bitcoin has become stronger and is heading towards $64,000 at the time of writing. Meanwhile, gold is rising sharply.
According to data from the World Gold Council, gold prices appear to have been in strong demand over the past three months. Since gold is considered a safe haven, economic uncertainty tends to drive demand higher.
In the US, a half-point rate cut by the Federal Reserve has analysts worried about a possible slowdown. Elsewhere, such as India, the final quarter of the calendar year is pointing to festive demand for gold as an auspicious metal.
Based on the current price action, it is possible to define gold as having entered a parabolic advance (in red). It is easy to make the mistake of taking profits prematurely in parabolic moves. Previous Bitcoin bull cycles are examples of this.
According to analyst Peter Brandt, gold is likely to enter a “parabolic rally” where prices rise very quickly in a short period of time. “Currently, gold is at an all-time high, while Bitcoin is still lagging behind,” Mridul Gupta, co-founder of Indian cryptocurrency exchange CoinDCX, told Cryptopolitan.
