Silver at 7-year high is a good sign for Bitcoin

  • Silver prices hit 7-year high.

  • Analysts think silver rally could outshine gold.

  • Bitcoin price (BTC) may show a direct correlation with silver.

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Recently, silver and gold have been performing well. A number of analysts believe that bitcoin correlates with the prices of these precious metals.

The cryptocurrency market quite often shows a correlation with precious metals, and “gold bugs” are often supporters of bitcoin (with some well-known exceptions). Silver, in turn, also attracts cryptocurrency hodlers as an attractive asset for investment..

Silver can outshine gold

It is noteworthy that earlier the focus of attention was mainly on the rally of gold to new historical highs and its correlation with the “digital gold” – bitcoin. Recently, however, market participants have begun to look more closely at silver..

White metal hit 7-year highs today and is still trading above $ 28 at the time of writing. For comparison, at the beginning of May the cost of an ounce of silver was only about $ 15.

Recently, Michael Hsu, an analyst at Deutsche Bank, said in an interview with CNBC that silver could outperform gold in the short to medium term.

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He stressed that silver is not only a store of value, but also used in industry. As the global economy recovers from the pandemic, this feature of the metal may provide additional support, Hsu said..

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Silver at 7-year high is a good sign for Bitcoin

In addition, there is now an increase in physical demand for metals, but at the moment the industry does not have enough human resources to simultaneously produce silver and gold coins. This scarcity can also fuel interest in silver. However, while gold remains the undisputed leader in the precious metals market.

Bitcoin is not far behind

In any case, bitcoin can benefit from the growth of any of the metals. So, Bloomberg experts like to regularly point out parallels in the dynamics of prices for bitcoin and gold..

Meanwhile, the editorial staff of BeInCrypto recently drew the attention of readers to the fact that silver and bitcoin have shown similar dynamics since the beginning of February. Indeed, silver broke through resistance in the $ 18.50 area around the same time bitcoin broke above $ 10,400. Perhaps, soon the comparison of bitcoin with silver will become no less common than with gold.

In the meantime, we can say that now the rise in asset prices is taking place simultaneously in many markets, and all this in general now supports the interest of investors in both precious metals and bitcoin..

Silver at 7-year high is a good sign for Bitcoin


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