Gold (GLD) and silver (SLV) investors are having a strong year, especially when compared with crypto holders. In fact, gold futures moved above $4,550 on Friday and remained near record highs after setting more than 50 new records this year. At the same time, silver surged past $75 per ounce, thereby pushing its year-to-date gains to roughly 150%. Interestingly, Silver’s rally has been fueled by worries about physical shortages due to strong industrial demand. Other metals have also joined the surge, with platinum (PPLT) and copper (COP) both hitting record highs this year.
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However, cryptocurrencies have moved in the opposite direction. Notably, Bitcoin is on track to end the year in negative territory and is trying to avoid a third straight losing month. The world’s largest cryptocurrency has also diverged from stocks for the first time since 2014, despite friendlier regulation and growing interest from Wall Street. More specifically, after long-term holders sold and forced liquidations kicked in, Bitcoin fell roughly 30% from its October high of nearly $126,000 to just over $87,000.
As a result, critics such as Louis Navellier and gold bull Peter Schiff argue that investors may be better off buying gold due to central bank buying, lower volatility, and stronger liquidity. Nevertheless, some strategists believe that crypto may rebound. For instance, Fundstrat’s head of digital assets, Sean Farrell, said that he expects a bounce in January if December closes in the red, since similar patterns have historically led to recoveries.
Is Bitcoin a Good Buy?
Using TipRanks’ technical analysis tool, the indicators seem to point to a negative outlook for Bitcoin. Indeed, the summary section pictured below shows that two indicators are Bullish, compared to six Neutral and 14 Bearish indicators.
