Bitcoin continues to hold $17,000 and gold held by central banks at record highs

The Bitcoin price is currently hovering around $17.2k at the time of writing. The largest cryptocurrency by market cap had another quiet day with low volatility yesterday as it looked to strengthen its current position. Altcoins were also largely flat at the end of the day. More on that later.

In other news, the amount of gold held by central banks around the world has hit a 47-year high as worries about the global economy mount. This is particularly worrying as it is the highest level since 1974, just three years after the gold standard was dropped by the US Federal Reserve and then followed by the rest of the world. More on that later.

Disgraced US crypto exchange FTX is now officially under investigation for market manipulation. This is one of the most serious accusations against Sam Bankman-Fried (SBF) and his fraudulent platform. Even Terra founder Do Kwon believes he should be brought to justice under such charges. He’s lucky because the authorities are currently fixated on the FTX scandal, which is much bigger than the LUNA bust Kwon is famous for.

An extensive survey by Multiscope among 4000 Dutch people has shown that Bitvavo is the largest crypto exchange/broker in our country. No less than 48% of Dutch crypto owners use Bitvavo to buy and sell Bitcoin and other cryptocurrencies. Bitvavo is also rated the best by its users with an average rating of 8.1. In terms of share in the Dutch market, Bitvavo is followed at some distance by Binance (27%), Coinbase (13%) and Bitcoin Meester (10%). BLOX is in fifth place with 9%.

Bitcoin clings to $17k

Bitcoin is changing hands for about $17.2ki at the time of writing. The cryptocurrency saw very little price movement for most of the day yesterday, except at the very end when it hit well over $300.

The last 36 hours started with BTC trading around $16.8k. It traded sideways for a long time. It didn’t go above $16.9k and it didn’t go below $16.8k during this period. However, as it looked like the crypto would end the day without any visible change in price, a late move from around 15:45 in that the price rose above $17,200. Overall, even with the late price surge, there was no really significant change in the BTC price.

Bitcoin is doing its best to hold on to the $17,000 price level. Today’s action shows that the digital currency is more at home around this key resistance. It may remain status quo for at least a few days. But the fact that bulls cannot force a move further up shows that their strength is waning. They may have pushed the price out of multi-year lows of around $15.5k a few weeks ago, but further progress is needed to regain some control from the bears. Otherwise, the downward forces will

Bitcoin’s total market capitalization was around $330 billion and its share of the crypto market was 40.7%.

Bitcoin price chart

Altcoins remain stable

Other cryptocurrencies were largely flat at the end of the past 36 hours. The biggest changes came from Ethereum (ETH, 2.5%), Binance Coin (BNB, 2.4%), Ripple (XRP, 2.2%), Dogecoin (DOGE, 2.5%), Polygon (MATIC, 3.1%), Shiba Inu (SHIB) , 2%), Uniswap (UNI, 2.7%) and Chainlink (LINK, 2.2%).

Polygon price chart

In other news….

The amount of gold held by central banks hits the highest level in 47 years

Central banks’ hoarding of gold around the world has now reached a new high in almost half a century. Data from the World Gold Council (WGC) show these extraordinary figures. In Q3 2022, banks bought around 400 tons of the yellow metal for storage in their vaults. This is one of the highest levels of central bank purchases in history.

This massive hoarding of gold is not good for the economic outlook from the point of view of the currency system. The banks panic a bit and go back to gold, which has traditionally been a good benchmark against inflation. It may also mean that the banks predict an even greater economic and/or monetary collapse in the near future. Major oil-producing countries such as the UAE and Kazakhstan bought the most gold during this period.

The importance of gold, despite the decoupling of the precious metal from the US dollar in 1971, becomes clear when you see how fast the recovery of gold stocks has been. We’re already at the 47-year high, and if we hit the 51-year high, that would put us on par with the gold standard era, which is saying something. However, we still have a bit to go before we get there.

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