U.Today – Gold prices fell sharply yesterday as investors reacted, as expected, to the latest US inflation data which came in lower than expected.
Gold is traditionally seen as a safe and sound haven asset during unstable economic times and tends to rise when inflation rises. However, the latest CPI data has changed market sentiment, with many market participants now believing the Federal Reserve may cut interest rates. This has made gold less attractive, leading to a pointed sell-off.
On the other hand, (BTC) and other risk assets surged in response to the same data. Cryptocurrency is generally seen as a more speculative investment and tends to do well during periods of economic optimism.
Peter Schiff, a prominent gold advocate, said he was unhappy with the way the market had reacted. He believes investors had misread inflation data, which he said had led to an unjustified sell-off in the precious metal.
However, Schiff has always argued that gold is a more stable store of value than Bitcoin, which he believes is simply a “bubble.”
In addition, cryptocurrency skeptics found a reason to rejoice, stating that the rise in the value of BTC against the background of the fall in the value of this metal in the current conditions proves once again that the cryptocurrency is anti-gold, and not gold 2.0, as many claim.
Gold or anti-gold, the cryptocurrency rally is indicative of how the market is feeling right now as investors look to assets that could benefit from potential interest rate cuts and an improving economic outlook.
