So, over the last year, the narrative of Bitcoin being gold 2.0 has gained popularity. I've heard experts, analysts and journalists quoting this many many times and we did notice some of the money shifting that way.
However, the inflation has added gas to this fire and as gold did not show any gains after inflation numbers came in, many were quick to label gold dead.
I do understand the reason, Gold is a roughly 11 Trillion $ asset, it sure would be amazing if that money would flow into Bitcoin.
But we have to be able to divide the facts and the wishful thinking.
It seems like congress and the white house are starting to add pressure on the FED to ramp up tapering and this signals a potential threat to the markets and risk assets in particular.
This seems to be gaslighted lately as everyone is only focusing on inflation.
I am not sure if I want to see what is going to happen if Fed will start to be more aggressive than anticipated and will increase the interest rate as early as 2022.
On top of all that, we see a lot of weakness across the board in crypto markets today and coincidentally gold has one of the best days in a year being up almost 1% on a day.
I think these dynamics are going to be very interesting to watch over the coming months.
Posted Using LeoFinance Beta
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