Crypto analyst predicts Bitcoin will soon outperform gold, citing gold’s overextension and suggesting shifting market dynamics will strengthen Bitcoin’s position. BTC currently at $93,870; gold at $3,283 per ounce.
A well-known cryptocurrency analyst is predicting that Bitcoin (BTC) will soon start outshining gold in performance. In a recent update on his InvestAnswers channel, which boasts a following of 565,000 on YouTube, he laid out his timeline suggesting that Bitcoin will outperform the precious metal in the coming months, especially since he believes gold’s recent rally to $3,500 has left it overextended.
The analyst pointed out the tight correlation between Bitcoin and the Nasdaq, emphasising Bitcoin’s classification as a risk asset, in contrast to gold which is deemed a safe haven. However, he noted that the correlation between Bitcoin and gold is quite inconsistent; sometimes they move together, and at other times they don’t. Currently, Bitcoin is riding on the success of its post-halving period and achieved a record high prior to the halving, a first for the cryptocurrency.
He reflected on the fluctuating relationship between Bitcoin and gold, expressing a belief that as market dynamics shift, the correlation is likely to strengthen. The analyst suggests that, with gold currently overbought, a mean reversion is expected in its price, allowing Bitcoin to gain an edge over gold over the next six months.
At the time of this report, Bitcoin’s price sits at about $93,870, reflecting a slight dip in the last 24 hours, while gold is priced at $3,283 per ounce, also exhibiting a minimal decrease. Overall, the InvestAnswers host thinks that while Bitcoin may seem to be lagging behind gold now, it is poised to take the lead in the near future, with a clear path ahead over the next half year.
