[Taklimakan Blog] Silver at 7-year high is a good sign for Bitcoin

The silver and gold have been performing well. Some analysts believe that bitcoin correlates with the prices of these precious metals.

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

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.

Michael Hsu, an analyst at Deutsche Bank, said in an interview with CNBC that silver could outperform gold in the short to medium term. He stressed that silver is not only a store of value, but also used in the industry. As the global economy recovers from the pandemic, this feature of the metal may provide additional support, Hsu said.