Why Bitcoin Outperforms Gold and Stocks
Over the past two weeks, as the price of Bitcoin rallied sharply, gold and the US stock market have steadily rallied.
The confluence of three major factors has probably contributed to the rise of Bitcoin since the beginning of October.
First, the announcement of PayPal’s crypto integration boosted market sentiment. Second, the institutional demand for BTC has been steadily increasing following the investment from Square, MicroStrategy and Stone Ridge. Third, Bitcoin’s favorable logic charts in the high time frames have sparked significant optimism.
In particular, after breaking above $ 12,000, Bitcoin’s volume in the spot, institutional, and derivatives market skyrocketed. As a result, the digital asset began to outperform most of the assets with and without risk. Boyfriend he told me:
“Gold is down against bitcoin, as expected cc: @michael_saylor Everyone is taking note. The next thing I expect is the correlations between BTC and the dollar and BTC vs stocks to break down too… let’s see. #Bitcoin. “
As Cointelegraph reported, when Bitcoin broke through the resistance level of $ 12,000, it marked a clear break on the weekly chart. Traders have started identifying daily weekly and monthly charts to predict a new all-time high.
Bitcoin’s strong technical momentum and its decoupling from gold and stocks may also reinforce the intensity of the current rally in BTC.
In the short term, cryptocurrency technical analysts say Bitcoin faces an identity crisis, but luckily in a good way.
Cantering Clark, a Bitcoin and derivatives trader, said gold was under pressure when the dollar rose. The analyst said that for BTC, due to the uncertainty of whether it is a risky or risk-free asset, it might see a lower correlation with the dollar. he wrote:
“Gold’s opponent is the dollar, if the $ DXY goes north, gold is immediately under pressure. $ BTC has the benefit of always having the identity crisis, where some see it as an SOV, and others see it has a higher beta on stocks.
The confidence of leading investors is the icing on the cake
As Bitcoin’s momentum continues to gain against gold and stocks, prominent billionaire investors are voicing their support for BTC.
Paul Tudor Jones, the billionaire Wall Street investor who bought Bitcoin in May, reaffirmed his positive stance on Bitcoin.
Hasu, a researcher who writes for the best Deribit cryptocurrency options exchange, city Tudor Jones says:
“I have never seen a store of value where you also have [such] great intellectual capital behind it. […] When you sell the bond market as a hedge against inflation, you are really betting on humanity’s error rather than its ingenuity. ”