Gold “sinks” against Bitcoin is very optimistic about the cryptocurrency, says Raoul Pal

Earlier this week Raoul Pal, attorney for Bitcoin (BTC) and CEO of Real Vision, said gold is going down against BTC. If the leading cryptocurrency continues to gain momentum versus gold, it could strengthen its perception as a store of value.

Last month, Bitcoin’s price rose 30.36% against the US dollar, from $ 10,136 to $ 13,217. In the same period Gold gained approximately 2.25% from USD 1,863 to USD 1,903.

Gold crash against Bitcoin. Source: Raoul Pal, Bloomberg

Why does Bitcoin outperform gold and stocks?

In the past two weeksWhile the price of Bitcoin rose sharply, both gold and the US stock market rebounded steadily.

Gold “sinks” against Bitcoin is very optimistic about the cryptocurrency, says Raoul Pal
Gold “sinks” against Bitcoin is very optimistic about the cryptocurrency, says Raoul Pal

The confluence of three big factors It has likely contributed to the Bitcoin price surge since the beginning of the month.

First, The announcement of PayPal’s cryptocurrency integration has boosted market sentiment. Second, Institutional demand for Bitcoin has grown steadily after investments from Square, MicroStrategy, and Stone Ridge. Third, Bitcoin’s inexpensive logarithmic charts over extended periods of time have generated considerable optimism.

In particular, After exceeding $ 12,000, the volume of bitcoin skyrocketed on-site, as well as in institutional and derivatives markets. As a result, the digital asset outperformed most of the risk-free and risk-free assets. Dude He said::

“As expected, gold crashes against Bitcoin. Cc: @michael_saylor Everyone takes note. The next thing I hope for is that the correlations between BTC and the dollar and BTC versus stocks will also decrease … we’ll see. #Bitcoin “.

As Cointelegraph reported, when Bitcoin crossed the USD 12,000 resistance level, it was a clean breakout on the weekly chart. Traders have started looking at the weekly and monthly logarithmic charts to predict a new all-time high.

Bitcoin’s strong technical momentum and its decoupling with gold and stocks may also add to the intensity of the current cryptocurrency trend.

In the short term, this is what technical analysts of cryptocurrencies say Bitcoin is facing an identity crisis, but luckily in a good way.

Galloping Clark a bitcoin and derivatives trader, said Gold is under pressure when the dollar rises. The analyst said that for Bitcoin, Because of the uncertainty as to whether it is a risk-free or risk-free asset, a lower correlation with the dollar can be found. Wrote::

“Gold’s opponent is the dollar. If the $ DXY goes north, gold is under immediate pressure. The advantage of $ BTC is that the identity crisis still lingers, where some consider it an SOV and others see it has a higher beta game in stocks. “

Prominent investor confidence is the icing on the cake

As Bitcoin momentum continues to gain ground versus gold and stocks, Several billionaire investors support BTC.

Paul Tudor Jones, Billionaire Wall Street investor who bought bitcoin in May, reiterated its positive stance on Bitcoin.

Hasu, A researcher who writes for the popular crypto options exchange Deribit, quoted to say to Tudor Jones:

“I have never seen a store of value that also contains (such) great intellectual capital. […] When you close the bond market as an inflation hedge, you are betting on human error rather than your sanity. “

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