- Bitcoin and gold positions soar on eToro as the trade dispute intensifies.
- Gold has always been a natural hedge in the financial market but Bitcoin seems to be coming out strongly as well.
A recent report from eToro, a multi-asset investment firm based in the United States says that retail investors are seeking to turn to Bitcoin and gold to hedge against the suffering stock market due to the ongoing trade dispute between the United States and China.
An article regarding the report was shared by The London Economic on August 26. eToro’s data shows that retail investors are betting on both Bitcoin and gold owing to the increasing positions in both gold and Bitcoin their platform. A comment by eToro’s analyst Simon Peters says:
“Bitcoin by comparison shares similar characteristics to gold in that there will only ever be a finite amount in existence (21 million), it’s decentralised, its price is not affected by inflation and it has the added benefit over gold of lower storage costs. Bitcoin requires vault-like storage to protect it from thieves, but it only ever takes up data. Therefore, it is unsurprising that bitcoin is commonly referred to as “digital gold”.
In reference to the trade war between the US and China Peters added:
“Because the two share so many similarities and benefits, it’s not too surprising that a growing number of investors are betting on bitcoin as a safeguard. As the US/China trade war has escalated and more announcements of tariffs from both countries are made, we are seeing a greater number of positions being opened in both bitcoin and gold on eToro by retail investors.”
Read more: Bitcoin price analysis: BTC/USD treads above $9,500 nurturing the uptrend
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