Bitcoin and the entire cryptocurrency markets have incurred a severe bout of volatility over the past several weeks and months, which has primarily been in favor of the cryptocurrency’s bulls.
Lately, Silver has also been incurring some positive price action, and one analyst believes that this has largely been driven by investors increasingly viewing Bitcoin as being too volatile to be an effective safe haven asset.
Silver Price Surges as Bitcoin Faces Strong Selling Pressure
At the time of writing, Bitcoin is trading down nearly 2% at its current price of $10,400, which is down significantly from its 24-hour highs of over $11,000 that were set yesterday after the cryptocurrency sharply moved upwards before incurring a massive influx of selling pressure.
In contrast, Silver has been consistently skyrocketing for the past several weeks, and is currently trading at $16.19 per ounce, which is up significantly from its recent lows of $14.3 per ounce that were set in early-June.
Although this type of price movement seems nominal when compared to those seen within the crypto markets, it is important to note that this price surge is quite significant for a safe haven asset like Silver.
Gold has also been facing growing buying pressure as of late, and is currently trading at $1,425 per ounce, up from its one-month lows of $1,350.
Could Silver’s Price Surge Be the Result of BTC’s Decline?
Importantly, one analyst believes that Bitcoin’s recent volatility has done severe damage to its image of being a digital safe haven investment, and that the outflow of capital from BTC may be entering commodities like Silver and Gold.
Jim Iuorio, the managing director at TJM Institutional Services, recently discussed this possibility while speaking to CNBC, saying:
“I think one of the reasons that silver’s rallied like it [has] is because bitcoin’s kind of been taken off the list of safe havens with its recent volatility, so something had to replace it.”
Despite this, Equity Armor Investment’s Brian Stutland explained to CNBC that he prefers both Gold and Bitcoin to Silver while looking at long-term price action.
“I’d short [silver]… I’d even throw in a long gold and play the long-short on it. I still like gold better [in the] longer term, or even bitcoin after this big pullback here,” he said.
As Bitcoin’s volatile price action continues to unfold and analysts gain a greater understanding of where it is heading next, it is highly likely that the state and status of its recent bull run will grow increasingly clear.