(Kitco News) It’s been a chaotic week for the markets as cryptocurrencies, stocks, and even commodities saw massive selloffs. But one sector stood out, with gold approaching the $1,900 an ounce level.
Here’s a look at Kitco’s top three stories:
3. Bitcoin saw its biggest one-day loss since March of last year, dropping to nearly $30,000 for the first time since late January.
There were several triggers behind the selloff. Tesla said it would no longer accept payment in Bitcoin as Elon Musk criticized bitcoin’s heavy energy usage. Then China said it would ban financial and payment institutions from providing crypto services. And now, the U.S. Treasury is proposing to enhance tax compliance, with a new requirement to report any crypto transfer of at least $10,000 or more to the IRS.
2. Gold is gearing up for a breakout above $1,900 while the crypto space, stocks, and commodities struggle.
Overall, gold is up more than 6% over the last 30 days, rising $200 since its bottom of $1,680 at the end of March.
1. The exodus from bitcoin is also helping gold. JPMorgan said that some big institutional players are ditching bitcoin for gold.
Bitcoin drop coincided with new inflows into gold. And According to JP Morgan, “this suggests that institutional investors appear to be shifting away from bitcoin and back into traditional gold.”