Gold hits four-month high following crypto crash
May 25, 2021. Summarized by summa-bot.
Compression ratio: 49%. 1 min read.
Renewed bullish action in the gold market has coincided with a sell-off on crypto markets, with spot gold spiking around 4% since mid-May.
In the aftermath of the Mid-May crypto market sell-off, gold has seen significant price recovery.
Gold prices continued to inch higher on Tuesday, hitting $1,887 per ounce at 3:00 am EDT, according to data from TradingView.
After topping above $2. 5 trillion, the total crypto market capitalization started seeing consecutive slumps, eventually sinking below $1. 3 trillion on Sunday, according to data from CoinMarketCap. According to Bob Haberkorn, a senior market strategist at brokerage firm RJO Futures, growing gold prices could be attributed to a weaker dollar accompanied by lower United States Treasury yields.
A number of financial analysts have drawn parallels between the trends in the crypto and gold markets, with JPMorgan experts suggesting last week that large institutional investors were dumping Bitcoin (BTC) in favor of gold.