Earlier this week, Bitcoin (BTC) lawyer and Real Vision CEO Raoul Pal said that gold is crumbling against BTC. If the dominant cryptocurrency continues to gain traction against BTC, it may increase its perception as a value store.
Over the past month, Bitcoin has risen 30.36% against the US dollar, from $ 10,136 to $ 13,217. During the same period, gold rose 2.25% from $ 1863 to $ 1903.
Gold falls against Bitcoin. Source: Raoul Pal Bloomberg
Why is Bitcoin ahead of gold and stocks?
Over the past two weeks, although the price of bitcoin has risen sharply, gold and the US stock market have recovered steadily.
The combination of three main factors has probably contributed to Bitcoin’s increase since the beginning of October.
First, the announcement of PayPal’s cryptocurrency integration increased market sentiment. Second, institutional demand for BTC has increased regularly following investments from Square, MicroStrategy and Stone Ridge. Third, the record lists for the high Bitcoin timeframes are very encouraging.
In particular, after breaking over $ 12,000, Bitcoin has risen in the spot market, in institutions and in derivatives. Therefore, digital assets are beginning to exceed most assets at risk. Pal sa:
“Gold is crumbling against Bitcoin as expected. CC: michael_saylor notices everyone. The next thing I expect is that the correlation between BTC, dollars and BTC with stocks will also collapse … Let’s see #Bitcoin. ”
As Cointelegraph reported, when Bitcoin crossed the $ 12,000 resistance level, there was a clear breakout on the weekly chart. Traders are starting to set weekly and monthly charts to predict new full-time times.
Bitcoin’s strong technical momentum and separation from gold and stocks can also strengthen Bitcoin’s current rally.
In the short term, technical analysts for cryptocurrency say that Bitcoin is facing an identity crisis, but fortunately in a good way.
Bitcoin and derivatives trader Canning Clark said gold is under pressure when the dollar rally. The analyst said that for the BTC, given the uncertainty of whether it is a risky or uncertain asset, it may see a lower correlation with the dollar. He wrote:
The dollar is the opponent of gold, so if the dollar goes north, gold will immediately come under pressure. The US dollar BTC has the advantage of continuing the identity crisis as some see it as an SOV, and some believe that the beta is higher than stocks.
Leading investor confidence is the cherry on top
As Bitcoin continues to rally against gold and stocks, well-known billionaire investors have expressed support for Bitcoin.
Paul Tudor Jones, the Wall Street billionaire investor who bought Bitcoin in May, has confirmed his positive attitude towards Bitcoin.
Hasso, a researcher who writes for the best exchange of cryptocurrency alternatives Deribit, quotes Theodore Jones to say:
“I’ve never seen a value store where you [appear to] have significant intellectual capital. […] When you sell the bond market as a way to hedge against inflation, you are really betting on the delusion of humanity and not on its ingenuity. “