Gold soaring Bitcoin follow

Gold is soaring. Will Bitcoin follow?

Gold Hits $1,800 After 9 Years as Bitcoin Challenges Major Resistance at $9,300

Bitcoin or gold? The debate over the two macro assets looks ready to boil over as the precious metal returns to $1,800 for the first time since 2011. 

Gold is circling its all-time highs against the U.S. dollar, but Bitcoin has yet to show an intention to follow in its footsteps.

As traditional fiat markets look increasingly erratic, investors are piling into gold as the classic safe haven asset. 

On the back of 6.3% monthly gains, XAU/USD hit $1,800 on July 8, capping a nine-year hiatus and nearing its all-time highs. At press time, the 2011 peak of around $1,830 was just $20 away.

Gold soaring Bitcoin follow
A 3-month comparison shows gold’s trajectory versus Bitcoin. (Photo:

At the same time, Bitcoin, which supporters and mainstream commentators increasingly refer to as “digital gold,” has yet to put in similar moves.

As Modern Consensus reported this week, price performance for BTC/USD remains decidedly uncertain, with resistance at $9,300 firmly dictating growth potential since June 24. BTC broke through that ceiling today, reaching $9,428 at press time. Whether that will hold is another story.

Traders hope for Bitcoin copycat move

For gold bug Peter Schiff, gold’s recent performance formed an ideal basis for fresh snubbing of Bitcoin holders.

“Gold seems to be chipping away at resistance just below $1,800 while Bitcoin is simultaneously chipping away at support just above $9,000,” he summarized in a Twitter survey earlier this week.

“I expected both resistance and support to give way, with #gold surging as #Bitcoin collapses.”

Peter Schiff

In the event, almost half of Schiff’s 10,000 responses claimed that both Bitcoin and gold would profit under current conditions. Nonetheless, the situation remains complex, with Bitcoin contending with continued correlation with booming stock markets.

Year to date, however, Bitcoin remains on top, with almost 30% returns compared to gold’s still impressive 16.5%.

Gold soaring Bitcoin follow
Bitcoin continues to lead the pack in terms of macro asset year-to-date returns. (Photo:

Gold and Bitcoin bugs unite behind COVID-19 criticism

Despite their differences, meanwhile, Bitcoin pundits found common ground with Schiff as the fallout of the United States’ economic policy over Coronavirus continued to unfold. 

Under fire on social media this week was the government’s so-called Paycheck Protection Program (PPP), which awards loans to businesses in return for retaining staff. 

According to both Schiff and RT host Max Keiser, one of his most outspoken critics, the scheme underscores the unfairness of fiat money as it is distributed throughout the general population.

“The government can’t claim credit for the #PPP saving jobs simply because a company took the money? There’s no proof that all such companies would have laid off workers but for PPP funds. The government is taking credit for saving jobs that were never in jeopardy of being lost,” Schiff said.

Responding, Keiser described his words as “so true.”  He wrote:

“…And I can think of several ‘crypto’ companies that fall into this category. Particularly those that brag about ‘doing great’ and ‘never better’ but somehow think stealing money from truly needy SME’s is an acceptable definition of ‘doing great.’”

Max Keiser

The concept of those closer to the source of financial relief profiting at the expense of those further out in the economy is known by Keiser as the “Cantillon Effect,” and forms a regular topic on his Keiser Report TV show. 

Bitcoin, he says, is the remedy to this imbalance, which will ultimately lead to an inflated gap between rich and poor. Keiser has coined the term “neo-feudalism” to represent such a scenario.

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Anthony Bevan is a journalist focusing on disruptive finance and cryptocurrency, along with the changing face of the market as Bitcoin gains mainstream adoption. Journalists covering cryptocurrency for Modern Consensus May hold positions in some of the currencies they write about.