FX.co ★ Crypto rally is over

The crypto rally is over. Hence, many expect gold prices to soar this month, as investors will certainly turn to precious metals.

In fact, recent reports already show that prices of inflation-protected precious metals are approaching $ 1,900. Meanwhile, Bitcoin has fallen by almost 40% from a peak of $ 63,000.

But the main cryptocurrency will remain as a strong contender of the yellow metal, especially since it is already considered as a good hedge against inflation. Leading experts have repeatedly said there is now a lot of confusion between Bitcoin and gold, as these asset classes are both in demand in the face of rising inflation. And based on the sharp jump of Bitcoin and Altcoins this year, it is clear that digital currencies will continue to be present in the portfolio of investors.

More than $ 20 billion has gone from gold ETFs in the last six months. Many fund managers base their Bitcoin price predictions on the movements in the precious metals market, so now that there's been a massive plunge in the main cryptocurrency, investors will take a wait-and-see approach before going back to the market.

And since nearly 12 million gold ETFs were sold in May, many expect the same scenario to happen in the main cryptocurrency. But Bitcoin will have a difficult time rising above $100,000, although a breakthrough in the COVID-19 vaccine will spark a strong increase in it.

Bloomberg Intelligence believes that Bitcoin will hit $ 100,000, which will allow it to become a digital reserve asset.