Source: Adobe/EwaStudio
Bullish sentiment appears to have returned among retail investors in the gold market after gold saw Bitcoin (BTC) strongly outperform gold for five months in 2022.
Looking at how the two markets have performed year-to-date, it’s clear that it’s been a tough year for the bitcoin crowd, whose wealth in US dollar terms has dwindled. And perhaps even worse, the normally cautious and risk-averse gold investors have simultaneously seen far better returns on their investment.
Depending on which data source is used, gold is up around 2% through Thursday in 2022, although it’s been a fairly volatile ride for the yellow metal. Still, the positive performance contrasts with a loss of around 35% for BTC investors, with the lion’s share of losses for BTC occurring in January and May of this year.
Bitcoin (blue line) versus gold (red line) in 2022:
Source: TradingView
Corresponding spectrum marketsa European trading venue for derivatives, the first signs of a “new rally” for gold could be seen at the end of May, supported by a weaker US dollar and euro.
“Following a May streak of decline that saw gold prices fall below $1,800 on May 16, gold prices started what appears to be a fresh rally in the final days of the month, helped by weakness in the dollar and euro,” said Michael Hall, Head of Distribution at Spectrum Markets, in a comment shared with Cryptonews.com.
Gold performance in 2022:
Source: TradingView
Hall added that both the US Federal Reserve (Fed) and European Central Bank (ECB) are facing high inflation while trying to manage a range of other economic problems, including supply chain shortages.
“Given the macroeconomic backdrop, it’s no surprise that investors are looking to take advantage of a gold price decline to make safe-haven allocations,” Hall said.
The comments came as a sentiment index known as SERIX showed that sentiment toward gold among retail investors was rising.
According to Spectrum Markets, SERIX data shows that sentiment bottomed in February this year and has been rising steadily ever since, hitting a yearly high of 116 in May. For comparison, the same sentiment index for the S&P 500 stock index was 100, while the German DAX 40 index had a sentiment of 99.
An index value of 100 at SERIX is considered neutral, while anything above it is bullish and anything below is bearish.
SERIX gold mood:
Source: Spectrum Markets
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Learn more:
– Bitcoin Could Hit $100,000 in Five Years If It Adopts Gold – Goldman Sachs
– Ray Dalio prefers bitcoin over bonds but gold over bitcoin
– BlackRock says gold is biting the dust while staring at bitcoin
– Why Bitcoin likes a harsh environment
– Gold faces a very physical problem; Bitcoin to the rescue!
– $25,000-$27,000 per bitcoin is “the bottom of this cycle” – Arthur Hayes
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