Lorenzo Stroe
Independent Analyst
- Bitcoin price seems to have finally decoupled from gold after a massive rally that started in October.
- The flagship cryptocurrency is on the verge of hitting a new all-time high above $20,000.
It seems that Bitcoin has decisively decoupled from gold for the first time in years as the correlation coefficient is dropping fast. In November 2018, Bitcoin price and gold price were inversely correlated, with gold seeing a 12% rally in the following four months while Bitcoin dropped from a high of $6,500 to a low of $3,228 in just one month.
Bitcoin price close to all-time highs as whales continue accumulating
Bitcoin has decoupled from the stock market and, more importantly, from gold, outperforming the precious metal. The narrative about Bitcoin becoming digital gold is gaining traction again, and it seems that whales agree.
Bitcoin whales chart
The number of whales holding between 10,000 and 100,000 BTC has increased significantly since May, growing by 2% in the last six months. This is a notable indicator that investors are still accumulating despite the price of Bitcoin rallying from a low of $3,782 towards a high of $19,400.
Gold vs Bitcoin chart
This factor, in conjunction with the break of the correlation with gold, is an extremely bullish indicator. On September 4, the price of Bitcoin was hovering at $10,000 and has increased by around 87% since then. On the other hand, gold has dropped by 8% in the same period of time.
Gold vs Bitcoin chart
The last time this happened was around April 2017 when Bitcoin was trading at $1,308 right before its biggest bull rally to date. The digital asset managed to reach almost $20,000 while gold was in a downtrend. This would suggest that BTC is ready for another colossal rally as it is on the verge of establishing a new all-time high.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.