UMA (UMA) price now up 300% in February
- Bitcoin is an “emerging competitor” to gold, CME’s Bluford Putnam says
- UMA (UMA) price has soared over 300% in February
- The digital asset gained about 45% in January
UMA (UMA) price has gained about 60% today to trade over 300% in February.
Fundamental analysis: Bitcoin’s status keeps improving
CME Group managing director Bluford Putnam said he believes Bitcoin is an “emerging competitor” to gold. He believes gold’s ongoing production is expected to rise this year, as opposed to Bitcoin’s fixed supply.
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According to the World Gold Council, around 197,576 metric tonnes (217,790 tons) of gold has been mined throughout history including an additional 2,500-3,000 tonnes (2,756-3,306 tons) added to stock levels on a yearly basis.
On the other hand, Bitcoin was developed to have a limited supply of 21 million units, which represents the maximum amount that can be produced as “block rewards” obtained through proof-of-work mining. Roughly 18.62 million BTC have been mined until now.
Still, Putnam warned investors that Bitcoin’s limited supply does not mean its volatility will decrease as well.
“Shifting patterns with demand can have very large and abrupt impacts on prices, bitcoin has illustrated this point,” Putnam said.
He pointed out that his company has started noticing that gold has been losing appeal as a hedge against global political uncertainty.
“In the 2017-2020 period, the mostly ups and occasional downs of the gold price appeared to be directly tied to [U.S. Federal Reserve] policy shifts more than anything else,” he added.
He also said that the relationship between gold and equities is expected to become tighter, affecting the metal’s safe-haven appeal.
Technical analysis: UMA price explodes higher
UMA (UMA) price has soared over 300% in February to trade above the $45 mark for the first time ever. The digital asset made substantial gains in the days behind us, after it gained about 45% in January.
With moves like this, technicals go out of the window. The price action has already pulled back to around $38 with a further move lower towards the $30 mark offering a near-term buying opportunity.
CME Group managing director Bluford Putnam said Bitcoin will become a more serious competitor to gold, which has started losing its safe-haven appeal. Elsewhere, certain altcoins – including UMA – have continued to scream higher.
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