Gold Price Crashes, as Bitcoin’s Value Rallies

Per data from Tradingview, the precious yellow metal, Gold, has seen its prices falling below $1700/oz in an early Monday morning, marking the lowest level since March, which analysts described as stop-loss driven selling.

At the time of the report, Gold prices have crashed to as low as $1,690/oz, compounding its losses of the past weeks. However, the yellow metal price has since recovered somewhat, now changing hands around over $1,740.

Down by 4 percent from the losses accumulated in the past seven weeks and 8.7 percent since its late May trade. It has recorded losses of about 8 percent so far in 2021. Equally, it is 14.6 percent down from its $2,040 all-time high seen in August 2020.

Reacting on the Monday price action of yellow metal, Peter Brandt identified wholesale liquidations as the cause, saying: “This has all the fingerprints of a bank/brokerage house conducting forced liquidation upon a huge leverage speculator.”

The drop in the U.S unemployment rate has been identified as a catalyst for the decline seen in commodity prices. Recall that the Bureau of Labor Statistics published a report that the country’s unemployment rate has dropped more than expected, from 5.9 percent to 5.4 percent.

Within this year, Bitcoin has lost more than 28 percent gains from its all-time high of over $64k. However, despite the massive loss, a Bitcoin is currently worth more than a Gold 25times. As far as mid-April, the flagship crypto-asset was valued 35times a Gold. At the start of the year, a Bitcoin was worth 15times a gold.

Per CoinGecko data, BTC price has slumped 2 percent over the past 24 hours to trade for $43,667 at the time of writing.

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