The correlation between gold and Bitcoin.

Gold has risen by 40% in the last 5 months, with the last time such a sharp increase occurring from March to August 2020, when it rose by 43%. It then entered over three years of consolidation.

From March to August 2020, although BTC rose by 168%, far exceeding gold, it actually did not rise much compared to before 312, essentially just recovering from the waterfall of 312. The main performer from March to August was gold.

However, after gold peaked and entered a period of fluctuation, Bitcoin surged from around 10k to 63k in one go!

It seems that gold is also entering a period of fluctuation after peaking. We won’t blindly claim that Bitcoin will definitely rise to a certain multiple. However, there is at least one more wave of a decent bull market ahead, and calling it a bear market now might be a bit too early.

The years 2020 and 2021 were due to massive liquidity, and this time is also in a rate-cutting cycle + the Federal Reserve has stopped tapering. Today, the US debt has exceeded 38 trillion, and the amount of liquidity in the market is considerable. The fact that large funds like gold have risen like this this year indicates a significant issue.

The crypto market is currently in a period of fluctuation, so be patient and wait for it to settle. The market will eventually go up.