Gold Nears $4,000 as Bitcoin Holds Below $120,000
- Gold has surged past $3,900 while Bitcoin remains in a range between $100,000 and $120,000 for nearly three months.
- This pattern aligns with historical trends where gold and Bitcoin take turns in leading market movements.
- Previously, from January to April, Bitcoin fell by 30%, whereas gold rose by 28% amid economic concerns.
- When gold stalled in August, Bitcoin rose by 60%, reaching new records.
Analysis:
- Charlie Morris of ByteTree notes that Bitcoin thrives in strong economies, contrasting with gold's preference for low rates and weak economies.
- The correlation between Bitcoin and gold is minimal, averaging around 0.1 over 90 days.
Currently, gold is experiencing a strong rally towards $4,000, while Bitcoin remains below $120,000. A slowdown in gold could signal Bitcoin's next breakout attempt.