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Gold price is currently increasing – Bitcoin has reached its highest level since mid-May

Gold price rises – Bitcoin has reached its highest level since mid-May

The cryptocurrency Bitcoin as well as the gold price can increase in the slipstream of the US labor market figures. Immediately after the US labor market data was released, the Bitcoin price climbed to over $ 50,800 per unit, its highest level since mid-May. According to the IG indication, the gold price is quoted at 1,822 dollars per troy ounce, which is around 0.70 percent plus.

Meanwhile, the job growth for the month of August disappointed expectations on a large scale.

Do you already know the top 10 cryptocurrencies to trade in 2021?

Bitcoin and the gold price can slip the slipstream of US labor market data

The current upward trend is mainly supported by the hope of a sustained flood of liquidity floods across the Atlantic.

Investors have welcomed a worsening situation on the labor market with open arms. The US Federal Reserve (Fed) was denied arguments today to end its ultra-loose monetary policy earlier than planned. Currently, what is known as “tapering” or the melting of bond purchases amounting to a monthly amount of 120 billion dollars is under discussion. An end to said monetary policy route should scare off investors around the globe.

Since crypto currencies and precious metals such as gold are popular hedge and diversification instruments in many places, Bitcoin, gold and co. Can find a breeding ground in view of a possible continuation of said monetary policy.

Central bank governor Holzmann wants the ECB to take off the accelerator

Against the background of rising inflation, if Central Bank Governor Holzmann has his way, the European Central Bank (ZEB) should take off the accelerator and reduce bond purchases. This means the so-called Pandemic Emergency Purchase Program (PEPP), which is capped to 1.85 trillion euros. It is not yet clear to what extent the said program will be extended, expanded or reduced.

The question marks regarding the delta variant of the corona virus remain too big. The fear of collateral economic damage in the face of new restrictions is and remains acute.

Bitcoin and the price of gold: it could go on like this

In view of possible speculation about a continuation of the ultra-loose monetary policy of the US Federal Reserve, said assets should continue to experience tailwind in view of the accompanying weakness of the dollar. For the Bitcoin price, equalizing the $ 52,000 mark remains indispensable in order to be able to force further upward momentum. The gold price could clear the way up to 1,900 dollars if the mark of 1,834 dollars per unit were conquered.

How to trade cryptocurrencies with IG yourself

Do you want to trade cryptocurrencies yourself? Open a live or demo account with IG and buy (long) or sell (short) Bitcoin using derivatives such as CFDs in a few simple steps:

  1. Create an IG trading account or log into your existing account.
  2. Enter “Bitcoin” in the search bar and select it.
  3. Choose your position size.
  4. Click Buy or Sell Order Ticket.
  5. Confirm the order.

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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