Bitcoin (BTC) hit seven grams of gold for the first time in over a year this week, when the precious metal peaked at an all-time high.
CoinGecko data showed that BTC / XAU returned to the main 7oz mark on October 25 and continued to rise to 7.02oz levels at press time.
Bitcoin Gold Reaches Its Lowest Level in a Year
Although Bitcoin lost ground after the $ 14,000 challenge, the win over gold remained on Thursday as the traditional safe haven felt pressure from coronavirus tensions and U.S. election uncertainty.
The last time BTC / XAU was worth 7 grams was in September 2019.
In a commentary on recent events, quantitative analyst PlanB, creator of a family of stocks for streaming bitcoin pricing models, called the move “significant.”
Data monitors Ecoinometrics responded on Twitter, “Looks like #Bitcoin is gearing up to grab a large chunk of gold capital.”
#BTC is currently valued at about 2.4% of the gold market volume. This is just the beginning. ”
This sentiment was echoed by recent comments from Real Vision CEO Raul Pal, who said that gold is “crumbling” relative to Bitcoin and that other shared assets will follow.
Last week, he wrote: “The next thing I expect is that the bond between BTC, dollar and BTC will also collapse against stocks … let’s see.”
Schiff: Bitcoin Is “The Biggest Bubble I’ve Seen”
Peter Schiff’s gold mining problem has not abated in response to the latest price change. While BTC / USD remained far from its highest of $ 20,000, in a new Twitter post, Schiff described the largest cryptocurrency as a bubble.
“If you measure the size of asset bubbles based on buyers’ confidence in their trade, then the # Bitcoin bubble is the largest I’ve seen,” he said.
“Bitcoin traders are more confident that they are right, and they feel confident that they cannot afford to lose more than the internet or homebuyers because of these bubbles.”
Bitcoin has not yet been hit by the renewed uncertainty in the global economy, leading to growing claims that the link to traditional assets has completely disappeared.
As Cointelegraph reported, the correlation between BTC / USD and the S&P 500 has reached zero again this week as bitcoin has begun to rally recently.
Morgan Creek Digital co-founder Anthony Pompigliano sums it up: “It couldn’t be more disconnected than it is now.”