Gold is on the Rise! Is The Expected Increase For Bitcoin Price On The Way?

Stocks, precious metals, and other crypto assets, along with Bitcoin, have suffered a serious collapse due to the coronavirus epidemic that started on December 31 and is still rapidly spreading and threatening the world.

Today, while the rise of many stock indices remained limited, gold, which is considered as a safe haven in traditional markets, experienced a serious rise. Now, the question of whether Bitcoin is the asset to experience the next upward leap comes to mind.

After the record losses due to the effects of the global pandemic and the panic sales related to them, the markets started to correct slowly. Today, the S&P 500 and Dow Jones stock exchanges moved their stock indexes to the maximum level with the opening. Having experienced a serious decline last week with the stock market, gold has gained considerable value today.

Although the image is positive as a result of the measures to save the economy taken by the countries, especially America’s insistence on printing dollars will cause serious inflation. The interest of investors who know this due to their relative scarcity is increasing day by day.

It is similar to gold due to its limited number in Bitcoin, and is called digital gold by many. Also, it has a deflationary structure since it is limited in Bitcoin. For these reasons, with the introduction of more and more fiat currencies, their value decreases and naturally this leads to increases in Bitcoin price.

Bitcoin’s upcoming halfway activity may be delayed a little more due to the coronavirus epidemic. However, it is seen as a high probability that it will happen in less than two months. With the decrease in supply, the value of the leading crypto asset is expected to increase.

Of course, it is not possible to predict exactly how economies will react and how much damage they will take after an event called black swan event like coronavirus. As Bitcoin is a high-risk, speculative asset, there are many different views on how to get out of this kind of chaos. While some segments state that crypto assets will attract more attention, other segments state that Bitcoin can be reset in such a crisis environment.

Although these recent increases in the Bitcoin wing are positively received, there is strong resistance in front of the leading crypto asset. The bulls need to do more to break this resistance. There is a common opinion that if the resistance cannot be broken, Bitcoin will experience a decrease again in the short term.