Raoul Pal, a Bitcoin advocate, and Real Vision CEO stated earlier this week that gold is currently breaking down against Bitcoin. The dominant cryptocurrency can strengthen its role as a store of value if it keeps gaining momentum against Bitcoin.
Bitcoin’s price during the previous month has gained 30.36 percent against the U.S. dollar. It went from $10,136 to $13,217. At the same time, gold has gained about 2.25 percent and went from $1,863 to $1,903.
Reasons why Bitcoin Outperforms Gold and Stocks
Both gold and the U.S. stock market steadily recovered in the past two weeks. Moreover, Bitcoin’s price has rallied firmly.
The combination of three major factors likely helped the uptrend of Bitcoin since early October.
The first factor is PayPal’s crypto integration announcement which kept the market sentiment afloat. Second thing is that after MicroStrategy, Square, and Stone Ridge’s investment the institutional demand for Bitcoin has continuously increased. Lastly, because of Bitcoin’s favorable high time frame log charts, optimistic views were expressed.
It is possible that Bitcoin decoupling gold and stocks and its firm technical momentum are contributing to the intensity of Bitcoin’s current rally.
Cryptocurrency technical analysts are saying that in the short term, Bitcoin is facing an identity crisis but in a good way.
A Bitcoin and derivatives trader, Cantering Clark, stated that when the dollar goes up, gold is under pressure. He stated:
Prominent investors’ confidence is the cherry on top
Well-known billionaire investors are expressing their support for Bitcoin as Bitcoin’s momentum continues to gain against gold and stocks.
The Wall Street billionaire investor, Paul Tudor Jones, who purchased Bitcoin in May has once again expressed his positive take regarding Bitcoin.
A researcher who works for the top cryptocurrency options exchange Deribit, Hasu, quoted Tudor Jones stating: