Gold Value Surges Above $1,500 as Bitcoin Price Rises to $7,330 BTC/USD

Gold has just surged above $1,500 as investors are getting ready for the new year. Meanwhile, Bitcoin (BTC) is getting a nice post Christmas boost at $7,330. One of the most important things for investors is to understand whether the U.S. Federal Reserve (FED) will be cutting interest rates next year.

Gold and Bitcoin Are Getting Ready For 2020

Just after Christmas and getting ready to enter into a new year, both Bitcoin and gold have registered good performances throughout 2019. While gold surged 17% YTD, Bitcoin is up more than 90% since January, seeing a low of middle three thousand range to currently above $7,000.

Gold has been considered a safe-haven asset that is used by individuals as a store of value. In human history, gold was also used as a means of payment as well and is very useful for investors to hedge against volatility in traditional financial markets.

Meanwhile, Bitcoin wants to become a new store of value besides being useful to make cross border transactions. In the future, Bitcoin could be useful for investors if it becomes the new ‘digital gold’ as many enthusiasts are already calling it.

The current U.S.-China trade war could also be arriving at an end and the Fed may decide not to lower the rates further. In 2019, the FED cut rates three times. The U.S. economy and its financial markets are also expanding and reaching new records in terms of jobs created and stock market highs.

Some analysts consider that gold could continue growing in the future and further rate cuts could push the precious metal to over $1,600. This shows investors are still adding gold to their portfolios at current prices.

Regarding Bitcoin, the leading cryptocurrency is expected to be halving in mid-May 2020 which could eventually be the catalyst of a new bull market in the crypto space.

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Author: Carl T