CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.50% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

75.50% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn More
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn More
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn More
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn More
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn More
Live Webinars

Boost your knowledge with our live, interactive webinars delivered by industry experts.

Register now
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Affiliate Programme

Grow your business and get rewarded. Find out more about our Affiliate Programme today.

Learn More
API Trading

Create your own trading platform or data tools with our cutting-edge APIs.

Learn More
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn More
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn More
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn More
Partnership

Plug into the next-gen platforms and the trades your clients want.

Create a live account
About ThinkMarkets
 
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn More
Security of Funds

Security of your funds is our number one priority. Find out more about our insurance policy with Lloyd's of London.

Learn More
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn More
ThinkMarkets News

Keep up to date with our latest company news and announcements.

Learn More
Contact Us

Our multilingual support team is here for you 24/7.

Learn More
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
search
Create account

Bitcoin hits $50K, but what about gold?

Fawad Razaqzada Fawad Razaqzada 16/02/2021
Bitcoin hits $50K, but what about gold? Bitcoin hits $50K, but what about gold?
Bitcoin hits $50K, but what about gold? Fawad Razaqzada
Investor appetite for gold and Bitcoin could not have been any more contrasting than earlier today. While Bitcoin’s price broke above $50,000 for the first time ever, gold had fallen more than 1% to trade back below the $1,800 level again. But gold managed to bounce sharply off its lows and was almost back to being unchanged at the time of writing as prices once again found support around that long-term $1800 level. Bitcoin was still up on the day, although off its earlier highs.

Reflation trade boost for Bitcoin

Earlier, the yellow metal was depressed as bond yields jumped higher with the return of US investors from a long weekend break. Bond prices have slumped in recent weeks with investors piling into the more risk-sensitive assets like stocks, Bitcoin, crude oil and copper amid speculation that the ongoing COVID vaccine rollout, slowing virus outbreaks and ongoing central bank and government stimulus will all help to stimulate a sharp global economic recovery.  In other words, the “reflation” trade has been kind to cryptos, but not much for safe-haven gold. Not yet anyway. More on Bitcoin below, but first let’s talk a little about gold:

Gold down but not out

However, as I keep repeating, while gold may be down it is certainly not out just yet. Although bond yields have rallied, the US dollar continues to struggle. What’s more, the Fed has repeatedly talked down the prospects of early QE tapering. Other major central banks echo the same sentiment. With interest rates likely to remain depressed, and the potential for inflation to come back, gold may be able to rise from the ashes and rally. After all, gold has traditionally been used as an inflation hedge.
 
What gold needs now is a bullish trigger – a technical signal to suggest a low has been formed. So far, we haven’t seen that, but a rise back above the 200-day average would certainly be a major warning sign for those who think gold is doomed:

goldSource: ThinkMarkets and TradingView.com
 
Bitcoin needs to hold above $50K

As far as Bitcoin is concerned, well, a lot of people have been expecting it to hit that $50K hurdle and now that it has, some investors will undoubtedly be taking some profit. Going forward, if Bitcoin finds itself holding above $50K in the days ahead, then we could see renewed bullish momentum come into play and drive prices towards $55K next. There are no obvious technical levels to watch on the upside, except the big milestones like 55K, $60K etc.

Bitcoin remains fundamentally supported because of growing demand as major companies warm towards cryptocurrencies. So, we may not see the repeat of the late 2017-style sell-off. Bitcoin has become a lot more stable and although it will dip here and there, it is unlikely to lose half of its value like it repeatedly did in the past. But in so far as the short-term is concerned, Bitcoin will need to hold its own above the $50K to keep the bullish momentum alive, otherwise a short-term correction could be on the cards.

BitcoinSource: ThinkMarkets and TradingView.com
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Learn more to earn more

our Education centre

Related articles:

Week Ahead: 19 April 2021

By Fawad Razaqzada

16/04/2021

Crude jumps on big US oil crude draw; demand ...

By Fawad Razaqzada

14/04/2021

Quiet start to busy week

By Fawad Razaqzada

12/04/2021

Gold nears resistance as traders watch yields...

By Fawad Razaqzada

08/04/2021

Stocks: Will the Fed be forced to taper QE so...

By Fawad Razaqzada

08/04/2021

Meet our contributors
Fawad Razaqzada
×
Fawad Razaqzada
Market Analyst, London

Fawad is an experienced analyst and economist having been involved in the financial markets since 2010, producing market commentary and research for a number of global FX, CFD and Spread Betting brokerage firms. He leverages years of market knowledge to provide retail and professional traders worldwide with succinct fundamental & technical analysis. Fawad also offers trading education to help shorten the learning curves of developing traders.
 
His colleagues consider him an expert at reading price action on the charts. This together with his deep understanding of economics and fundamental analysis, and trading experience, puts him in a great position to forecast short term price movements. Fawad covers a wide range of markets, including FX, commodities, stock indices and cryptocurrencies and his comments are regularly quoted by the leading financial publications such as Reuters and Market Watch. In addition to ThinkMarkets, Fawad also provides analysis and premium trade signals on his own website at TradingCandles.com.
 
 

Carl Capolingua
×
Carl Capolingua
Market Analyst, Melbourne

Carl has over 20 years' experience in financial markets and has held senior analyst roles at a number of financial institutions. Specialising in Australian and US stock markets in particular, Carl uses a top-down approach to assess the global macro picture before using both technical and fundamental techniques to select stocks. He regularly appears as an expert commentator on a number of media outlets throughout the Asia-Pacific region.
 
 
 

Fawad Razaqzada
Fawad Razaqzada
Fawad is an experienced analyst and economist having been involved in the financial markets since 2010, producing market commentary and research for a number of global FX, CFD and Spread Betting brokerage firms.
Carl Capolingua
Carl Capolingua
Carl has over 20 years' experience in financial markets and has held senior analyst roles at a number of financial institutions.

Feel confident?

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top