Bitcoin has Decoupled from Gold in Quarter 4 after an Increase of 70%

After expressing a bullish performance in the recent few weeks, the world’s leading digital currency has decoupled from gold. Market analysts believe Bitcoin could perform better than gold and is able to gain the market cap of $9 trillion.

Correlation Between Both Has Ended

In the last quarter of 2020, the flagship digital currency has witnessed an outstanding performance. According to on-chain reports, Bitcoin has surged by 70% in the Q4 of 2020. And in November, the highest monthly close occurred as the price value went above $19,500 two times in a month.

At the start of the year, the correlation between the top digital asset and gold has reached a peak position but now the trend is happening the opposite as Bitcoin is surging high while gold is decreasing in value.

Prominent members in the crypto space claim that investors are now ditching gold for Bitcoin. But it is just speculation as gold is holding the market capitalization in trillions of dollars and it is very difficult to take down gold.

Last month, the investment giant JPMorgan Chase & Co rolled out a report claiming that the king cryptocurrency challenged gold as an option of a store of value because the institutional’ interest in the digital traded objects is growing at an alarming rate.

Prominent trader of Wall Street and renowned former hedge fund manager Raoul Pal recently revealed that he wanted to sell his BTC holdings in order to invest in the flagship cryptocurrency.

On the other hand, there are some counterpart arguments which say that Bitcoin is not going to take away the market share of the gold. He even claimed that whales only manipulate to take profit after dumping the coin.

“Bitcoin is not taking any market share away from #gold. That hype is just part of the pump so the whales can dump. The only markets where #Bitcoin is taking share are for lottery tickets, sports betting, casino gaming, penny-stocks, and some overpriced large-cap momentum stocks,” said Schiff, CEO of Europac.

But the on-chain metrics unveil that addresses containing a large number of Bitcoin are increasing which shows investors want to dedicate Bitcoin in their portfolios. Based on the data provided by blockchain analytics firm Santiment, 44 BTC addresses holding 1,000 coins and 820 addresses containing BTC from 10-1,000 coins came out in the past two weeks.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related

Switzerland Sets to Use Blockchain for Supply Management

A very effective way to utilize blockchain technology is for managing the chain of supply. This chain is no longer a linear one from producer to consumer but now contains multiple sequences of producers, partners, clients, agents, etc.; hence, the use of blockchain is of high importance as it would enable assets to be traced […]

Coinbase Ticker COIN to Go Green on NASDAQ Today

The largest crypto-based enterprise and exchange platform Coinbase, has joined the ranks of public listed companies at NASDAQ. The COIN ticker is not just a new face on the block, but it has managed to make a grand entry into the cut-throat stock market in a manner that it is impossible to ignore its presence. […]

Collectors of Art Would be Able to Purchase New Token by Burning NFTs

The mysterious and successful NFT artist Pak has recently announced the launch of a new token, ASH. However, not every other investor would be able to purchase this token with digital assets or fiat currencies. A person who wants to own ASH would have to be willing to burn the NFT artwork under their ownership.  […]

SEC Actions Putting Bitcoin and Ethereum Investors at Risk, another Crypto Lawsuit

Yet another blockchain enterprise has gone under the radar of the Securities and Exchange Commission of the United States (SEC). LBRY Inc. is a blockchain-based and decentralized file sharing and payment network. The blockchain-based service is unique in a manner that it allows the users to get access to social media content, streaming services, and […]