Is Institutional Investment Warming to Gold Once More? Paul Harmaan Shares his Opinions
“For the first time in the last six months, we have noticed many of the big institutional investors switching to Bitcoins, but there will be a bearish trend in the market, and investors will be returning to gold investments.”
Paul Haarman shared this opinion when people were busy in the game of cryptocurrency. When Elon Musk announced that Tesla would no longer accept Bitcoins as a form of their payment, Bitcoin prices saw a bearish run. Elon Musk’s statement has been supported by the different reports made after considering environmental reasons which caused the bitcoin price to tumble in the last few weeks.
After his statement, there is an instant rise in inflation, regulations, and many ripples operating through the online crypto community platform.
Switching from Bitcoin to Gold Investments
“The flow of bitcoin continues to deteriorate and is targeted to continue retrenchment by most institutional investors. In addition, the bitcoin market has experienced brant and sustainable liquidation in the past few months since the time bitcoin ascent started.”
Paul Haarman says that most of the momentum traders and some crypto unwound funds are partially responsible for the ascent of bitcoin. However, seeing a short-term perspective ultimately turned it into negative, which could influence many traders to sell their assets off.
At present, the RSI, i.e., relative strength index, shows 71.51 of reading in the index. With the flattering of bitcoin assets in recent times, returning to precious metals could be considered a safe and prudent move for investors.
Why are Big Firms Jumping Back to Gold Investments?
In the last few months, gold touched up to a 20% hike, turning off more managers and exchanging investors towards the precious metals. According to the government, the investors increased their long position in the U.S in the future by 12%, which is the most since June. Meanwhile, a compiled data shows ETF investors have bought about billions for the last six sessions.
Prices have rebounded from lows to high as the dollar and federal reserve kept the interest rates low, even the condition of any sign arising of inflation. So, the expectations for furthermore increase in consumer price could start to grow more demands for the gold Investments.
People investing in possessions like gold instead of bitcoins or altcoins are the main reason they act as obstruction against bad government strategy.
An example though no less powerful, is Canada. There is a bill named C-10, through which government puts regulations on the content you post on Facebook, Instagram, or any other social platforms. However, the government cleared its perception by saying that they only seek to oversee professional content creators, not on everyday posts of the users. As a result of which, fears persist to the extent that freedom of speech is in jeopardy. Even Google, which owns YouTube, has voiced its concerns.
Elon Musk’s distorted comment on its energy usage has drastically put bitcoin under pressure. Even the Chinese government has also decided to crack down on Crypto investments and all of its ecosystem. This process will ultimately result in the banning of financial institutions from providing any service related to digital assets.
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