- The price of gold is less than 2 percent from all times high amidst the volatile geopolitical tensions.
- On-chain data shows that the Bitcoin network has experienced a modified demand from institutional investors.
The price of gold (XAU) gained about 3 percent in the past 24 hours to trade nearly $ 3,424 per ounce on Tuesday, May 6, in the mid-northern American session. Top-Tier Precious Metal expanded its acquisitions on Tuesday as India launched a military offensive attack against Pakistan following a recent terrorism attack.
Demand for the gold of global central banks continues to rise as the US dollar weakens against major currencies led by pounds, Japanese yen, and EUR. In addition, ongoing global trade negotiations greatly affects equity markets, led by United States stocks.
Price Price Prices Parabolic Rally
From a technical analysis perspective, the price of gold is on the verge of experiencing a parabolic rally that is potentially similar to the 1979 rally. If global demand for gold continues in the coming months, precious metal is likely to rally beyond $ 4k per Oz before the end of 2025Z
Expected impact on bitcoin price
The well -known rally for the price of gold liked the Bitcoin Bulls, as the ship's ship moved up nearly 1 percent to trade nearly $ 94.6K at the time of this writing. At the forefront of the federal fund rate of Wednesday and the FOMC's statement, the price of Bitcoin has experienced an increase in volatility.
Ultimately, the curb of cash from gold to Bitcoin by institutional investors will heal the expected parabolic rally for the BTC and the broader crypto market in the near future. Moreover, institutional investors – led by strategy, and blackrock – have been constantly accumulating bitcoin in the past.
In addition, Bitcoin Futures Open Interest (OI) has gradually increased over the past few weeks to $ 63 billion at the time of this writing.
