As Bitcoin is strong, the lightning crash shakes the gold market

During the early Asian trading session on Monday, the price of gold plummeted, exacerbating the accumulated losses in the past week.

On August 9, the price of gold fell below $1,700 per ounce due to a flash crash, and the price of gold quickly fell to its lowest level since March.

according to Transaction viewDuring the Asian trading session on Monday, the price of precious metals plummeted to US$1,690 per ounce. Since then, the price of gold has rebounded slightly, changing hands for the last time at $1,742 per ounce at the time of writing.

Gold is currently down 4% in the past 7 weeks and has fallen 8.7% since it traded above $1,900 per ounce at the end of May. So far, precious metals have fallen by 8% in 2021, and are currently down 14.6% from the historical high of just below US$2,040 in August 2020.

Forex trader and chart guru Peter Brandt attributed the crash to Wholesale liquidation, description: “Here are all the fingerprints of a bank/brokerage company for compulsory liquidation of a huge leveraged speculator.”

He pointed out that the leverage ratio of the Chicago Mercantile Exchange gold market is about 15 to 1, indicating that highly leveraged traders are pushing the price of gold.

Analysts at London trading company City Index are similar blame This morning’s crash led to “stop-loss related sell-offs in very light market conditions”.

However, the US unemployment data was also a catalyst for the decline in commodity prices last week.According to data from the US Bureau of Labor Statistics, the unemployment rate fell from 5.9% to 5.4% more than expected, setting a new low during the pandemic. Report Released on Friday. As the labor market and economy become broader, the U.S. economy continues to recover, and the city index concludes:

“Better employment data is pushing the U.S. dollar and U.S. bond yields higher, which has never been a good formula for commodities.”

One BTC is currently worth 25 ounces of gold, and Bitcoin has fallen by 28.5% relative to the historical high of gold. During the period when Bitcoin hit an all-time high of nearly $65,000 in mid-April, the value of a single BTC was 35 ounces of gold. However, at the beginning of 2021, one Bitcoin is worth 15.5 ounces of gold.

BTC price in gold ounces:

According to CoinGecko’s data, at the time of writing, BTC has fallen by 2% in the past 24 hours and is trading at $43,667.