institutional Investors dumping gold for Bitcoin10 Jan 2021 18:48
“There’s speculation that ETF investors are about to abandon the safe-haven trade since the U.S. political situation will see stability with President-elect Biden and as the U.S. begins to speed up their vaccine rollout,” said Craig Erlam, analyst at online broker OANDA.
“Someone big or a hedge fund is abandoning their bet on bullion and that could reverberate further.”
Some who exited gold on Friday did so to chase record highs in bitcoin - which has become a renewed craze of speculators after its 2018 mania, drawing as many headlines as Tesla (NASDAQ:TSLA) shares on Nasdaq.
“The institutional interest for bitcoin is starting to really hurt the long-term outlook for gold,” said Erlam, the OANDA analyst.
According to Chamath Palihapitiya, chief executive at Social Capital, bitcoin, also known as BTC, is "probably going to $100,000, then $150,000, then $200,000." He, however, said it was hard to give a time horizon for the milestones, given the hyper-speculative nature of cryptocurrencies.