27. Oktober 2020 Von admin Aus

Gold „plummeting“ against Bitcoin is very bullish for the Kryptonian, says Raoul Pal

Real Vision Group CEO Raoul Pal says that gold is „plummeting“ against Bitcoin, a sign that BTC’s upward cycle continues to strengthen.

Earlier this week, Bitcoin (BTC) advocate and Real Vision CEO Raoul Pal said that gold is plummeting against BTC. If the leading cryptomone continues to gain momentum against gold, it could strengthen its perception as a store of value.

In the last month, Bitcoin’s price rose 30.36% against the US dollar, from USD 10,136 to USD 13,217. During the same period, gold gained approximately 2.25%, from USD 1,863 to USD 1,903.

Why is Bitcoin performing better than gold and stocks?

Over the past two weeks, while Bitcoin’s price was rising sharply, both gold and the US stock market were steadily recovering.

The confluence of three major factors probably contributed to the rise in Bitcoin’s price since the beginning of the month.

First, the announcement of the integration of PayPal’s crypto currencies boosted market sentiment. Second, institutional demand for Bitcoin has been steadily increasing following the investment of Square, MicroStrategy and Stone Ridge. Third, Bitcoin’s favourable logarithmic charts of longer time frames have stimulated significant optimism.

In particular, after exceeding USD 12,000, Bitcoin volume in the spot, institutional and derivatives markets soared. As a result, digital assets began to outperform most risky and free assets. Pal said:

„Gold is plummeting against bitcoin, as expected cc: @michael_saylor Everyone take note. The next thing I expect is that the BTC to dollar and BTC to stock correlations will also plummet… we shall see. #Bitcoin“.

As reported by Cointelegraph, when Bitcoin Bonanza broke through the USD 12,000 resistance level, it marked a clean break in the weekly chart. Traders have begun to look at the weekly and monthly logarithmic charts to predict a new historical high.

Bitcoin’s strong technical momentum and its decoupling from gold and stocks may also be fueling the intensity of the current cryptomonal trend.

In the short term, technical analysts of cryptomonics say that Bitcoin faces an identity crisis, but fortunately in a good way.

Cantering Clark, a Bitcoin and derivatives trader, said that gold is under pressure when the dollar rises. The analyst said that for Bitcoin, because of uncertainty about whether it is a risky or risk-free asset, he could see a lower correlation with the dollar. He wrote:

„The adversary of gold is the dollar, if the $DXY heads north, gold is immediately under pressure. $BTC has the advantage of still having the identity crisis, where some see it as a SOV, and some see it as having greater beta play in stocks.

Prominent investor confidence is the icing on the cake

As Bitcoin’s momentum continues to gain ground against gold and stocks, several billionaire investors are expressing their support for BTC.

Paul Tudor Jones, the multi-million dollar Wall Street investor who bought Bitcoin in May, reaffirmed his positive stance on Bitcoin.

Hasu, a researcher who writes for the popular Deribit crypt-currency options exchange, quoted Tudor Jones as saying

„I have never seen a store of value in which there is also (so) much intellectual capital behind it. […] When you short the bond market as an inflation hedge, you are really betting on the fallacy of humanity rather than its ingenuity“.