While Gold (NYSEACA:GLD) has been on a tear in 2017. But as Bloomberg noted last week, Bitcoin is closing the gap!
Gold is trading at $1,258 an ounce while the cryptocurrency (CURRENCY:BTC) is trading near the narrowest gap in history at $79 below spot gold prices.
Earlier in 2017, Bitcoin got within $71 of trading at parity with Gold. Why is this happening? When looking at Bitcoin volumes, the majority of the push higher in Bitcoin is coming from overseas investors unloading their respective currencies and converting to Bitcoin. This is happening mainly in China when looking directly at the volumes. According to data.Bitcoinity.org, over the last 2 years over 90% of the volume has come out of China!
Here is chart showing Bitcoin closing the gap on Gold prices. ( Gold in White — Bitcoin in Orange) Chart created on Bloomberg
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