Fear of US recession: Gold in high demand, Bitcoin no longer in picture

In the past few months, we have heard people talk about the possible risk of a recession breaking in the U.S. People were talking about an upcoming recession and this risk aversion is boosting the gold price -however, its a different story for Bitcoin.

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In the past few months, we have heard people talk about the possible risk of a recession breaking in the U.S. People were talking about an upcoming recession during the China-U.S. trade war, but thankfully, that has been a little better. But people have again started talking about the possibilities and this risk aversion is boosting the gold price -however, its a different story for Bitcoin.

The U.S. Institute of Supply Management on Tuesday informed that the manufacturing index declined to a 10-year low of 47.8% last month. A reading that is less than 50% shows contraction in the manufacturing activity.

Holger Zschaepitz is a popular market analyst, and in one tweet, he has explained how the risk of a recession striking the U.S. and the increased chances of a recession are greater than 40%. During all this, gold has risen from $1,460 to $1,500 per ounce in 48 hours, and the gains are just extending with passing hours.

Gold is considered as a classic haven by investors, and it is benefiting from the recession concerns. Bitcoin, on the other hand, is trapped between the $8,000-$8,500 as the price is fluctuating between these ranges. Bitcoin’s demand has declined as a safe investment asset during these crises, which contradicts the argument that BTC is digital gold.

Some investors have been positive about Bitcoin’s position in the market and believe that in the future, BTC will take over and become a classic safe asset for investment. The situation might change in the future if the traditional investors decide to move towards the cryptocurrency market for investments. BTC is not linked to government currencies, and it has a deflationary nature, which gives it an intrinsic value.

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Vineet Chaudhary
Vineet Chaudhary
Vineet Chaudhary is a content writer with computer applications as his background field. His interests range from writing and photography to going out for trips and rides on weekends.

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