Real Vision CEO Raoul Pal sees it as a positive omen for Bitcoin that the cryptocurrency is gaining ground against gold.
Raoul Pal, crypto expert and CEO of Real Vision, points out that gold is currently losing to Bitcoin ( BTC ). If the market-leading cryptocurrency can increasingly win against the precious metal, this would also increase its power of persuasion as a store of value.
Over the past month, Bitcoin has gained 30.36% on its currency pair with the US dollar, an increase from US $ 10,316 to US $ 13,217. Over the same period, gold only gained 2.25%, up from $ 1,863 to $ 1,903.
Why is Bitcoin so strong right now?
While Bitcoin has seen a strong climb in the past two weeks, gold and the stock market have slowly recovered.
The interaction of three factors was largely responsible for the soaring of the cryptocurrency since the beginning of October.
Firstly, PayPal’s entry has boosted sentiment in the crypto market, secondly, there is increasing interest from institutional investors, which can be seen in the investments made by Square, MicroStrategy and Stone Ridge, and thirdly, the technical indicators on Bitcoin’s long-term price chart are positive .
Especially after Bitcoin cracked the 12,000 US dollar mark, the trading volume shot up significantly and the cryptocurrency was able to leave many financial products behind. In this regard, Pal says :
“As expected, gold is losing to Bitcoin. To: @michael_saylor Remember that! Next, I expect that Bitcoin can also outperform the US dollar and the stock market … let’s wait and see. #Bitcoin ”
As Cointelegraph had reported , the jump above the 12,000 US dollar mark for Bitcoin was also a breakout in the weekly chart. With a look at the weekly and monthly graph in logarithmic representation, some crypto experts are therefore soon seeing a new record high on the horizon.
The strong technical indicators as well as the increasing strength against gold and the stock market could further stimulate the current climbing party
In the short term, however, one analyst sees Bitcoin in an identity crisis, which may even be to the advantage of the cryptocurrency.
In this regard , the crypto trader Cantering Clark explains that gold usually comes under pressure when the US dollar goes up, while with Bitcoin it is not yet entirely clear whether this is an asset to avoid or to increase risk (with the chance of increasing profits). This uncertainty, in turn, reduces the correlation between the cryptocurrency and the US dollar. Clark writes:
“The US dollar is the opponent of gold, because when the US dollar index goes up, then gold automatically comes under pressure. Bitcoin has the advantage of the identity crisis because some see it as a store of value, while others see it as a multiplier for the stock market. “