As investors leave equities markets and cryptocurrency, they are increasingly turning to safe havens like gold.
On Wednesday, reports revealed Iran increased its crude oil exports by a significant amount, with Kharg Island shipments reaching 20,1 million barrels in the period between Feb. 15, and today, which is three times what they were on January. The increase was done to ensure a supply of crude and protect against a potential disruption should tensions rise with the United States.
Bitunix analysts say that the increasing hawkish US language regarding Iran’s nuke program is raising expectations for confrontation. “In the event of a direct US–Iran military conflict, gold could rise by roughly 15% within two weeks on safe-haven demand, targeting a range of $5,500-$5,800 per ounce,” In a letter shared with Cointelegraph, the analysts revealed their thoughts.
The analysts noted that Bitcoin is also susceptible to macro forces. They noted, for example, that flows of safe-haven funds into the US Dollar could affect Bitcoin.BTC) prices toward the $64,000-$65,000 zone. Bitunix analyst said that, on the other hand if inflation fears dominate dollar strength, capital would be moved into hedges to push BTC up towards 69,000 liquidity levels.
Related: Bitcoin Vs. Gold: ‘Better Opportunity to Buy’ BTC Than 2017
Fear of the unknown drives people to flee for safety
Investors’ behavior shows that they are already moving into assets with high safety. Data shared By The Kobeissi Letter, on Thursday it was shown that Indian investors were rapidly reallocating their capital to gold. The Kobeissi Letter on Thursday showed that Indian investors are rapidly reallocating capital into gold.
According to The Kobeissi Letter, the increased gold inflows coincide with a decrease in stock fund inflows. The demand for gold ETFs has increased by more than 90% since July, while inflows of around $1.9 billion into equity funds have dropped.
“As the world’s 2nd-largest gold consumer and one of its biggest importers, India’s shift toward gold ETFs marks a fundamental change in how its investors are allocating their capital,” Analyst said:
Gold has become the current trend trading The price of gold is slightly below the daily average at $5,172. Prices have increased by $219 (4.4%) over the course of the week.
Bitcoin’s price range is limited by a weak demand
Onchain data shows that crypto confidence is limited. Glassnode released a new report. said Bitcoin’s price has remained between $60,00 and $70,00, with a weak accumulation of whales and persistent ETF flows.
Related: Gold at $5,300 Splits Strategies at Tether and Coinbase
Report also showed that 9.2 Million BTC were currently at a loss. The realized 90-day profit-to loss ratio is below 1, which indicates that more holders have sold at a losses than taken profits.
US-listed Bitcoin ETFs saw a rebound on Wednesday Bitcoin rose back over $68,000. Inflows of about $506.5m per day, which is the biggest since early Feb, put the funds in line for their first weekly inflow in five weeks, after $3.8bn in outflows.
The Big Question Is China hoarding gold so yuan becomes global reserve instead of USD?
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
