Gold Follows the Bitcoin!!!

[ElBinBit]

History before the eyes

Guys! Gold and BITCOIN have swapped places!
This is incredible!
Just look at it.....



Chart BTC/USD


Chart XAU/USD

[exstasie]

I'd say BTC followed gold this year. Gold barely blinked during the March crash, and was hitting new ATHs during the summer. Now it's in a correction period. In comparison, BTC only began ramping up a couple months ago and hit a new ATH yesterday.

This has a real "sector rotation" feel to it. Money flows into one market (gold), establishing a powerful new bull trend. When we see a mid-term correction, that's when money flows into other markets. This is the same dynamic we see between BTC and altcoin markets during bubbles.

[wheelz1200]

I'd say BTC followed gold this year. Gold barely blinked during the March crash, and was hitting new ATHs during the summer. Now it's in a correction period. In comparison, BTC only began ramping up a couple months ago and hit a new ATH yesterday.

This has a real "sector rotation" feel to it. Money flows into one market (gold), establishing a powerful new bull trend. When we see a mid-term correction, that's when money flows into other markets. This is the same dynamic we see between BTC and altcoin markets during bubbles.

I think a larger sample size is needed before we can clearly see if and what markets are linked to crypto bulls and bears.  If 2021 is as good as everyone is expecting for crypto then gold is in for a good year so I'm all good with that

[STT]

I follow both markets and gold is a decade long market, the main reason thats forced is the mine establishment in hard rock especially takes 10 years to setup.   Supply coming online is a long term process and similarly it relates to the global reserve system which has  been in transition since the early 70's   This is really hard to compare to BTC which is tech related and brand new but all the same I agree Bitcoin has long term dynamics to it.     I'd still disagree they can swap places as easily as that or ever as there is elemental differences.   2011 gold peaked in its gains since the beginning of the century and thats a normal cycle for gold.    BTC when it tops and sells off maybe takes a year or so which is a long time to us but really its far more rapid in its exchange and movements between holders.
   My guess for gold is it is in appreciation, losing its downtrend, confirming that prior action and now rising year to year.   Even while its sold since the summer its going to appreciate with any dollar losses like many commodities but especially as a currency I think its a rising trend.   Gold and BTC are not in competition, as there will never be a singular standard neither is reducing demand for the other imo they simply act differently with differing frequencies, inertia, costs and demand

[hatshepsut93]

Gold and Bitcoin are rising for the same reason - investors are afraid of inflation, stock markets seem to be overbought, government bonds are not lucrative. Gotta park your money somewhere other than cash, since covid vaccine has already been released, so there's one less reason to hoard cash. If you want to prove that gold follows Bitcoin, you need to demonstrate how it crashes when Bitcoin crashes, and that's just not going to happen reliably.

[militiariko]

I want to disagree with you on this one; we should not let bitcoin bull run discredit the reality that has been on since the beginning of 2020; the truth is infact that bitcoin has followed gold footsteps greatly this year (as always) because bitcoin has not been consistent enough as gold. Bitcoin needs to do even much better before it can surpass gold; gold is accepted by everyone in the world; but for bitcoin (we both know the reality).

[yohananaomi]

I want to disagree with you on this one; we should not let bitcoin bull run discredit the reality that has been on since the beginning of 2020; the truth is infact that bitcoin has followed gold footsteps greatly this year (as always) because bitcoin has not been consistent enough as gold. Bitcoin needs to do even much better before it can surpass gold; gold is accepted by everyone in the world; but for bitcoin (we both know the reality).

obviously bitcoin and gold are two different systems in running it and there isn't any influence between the two. they have separate market shares and cannot force each other to influence each other.
In plain view, it distinguishes between bitcoin and gold, gold can be held in the form of objects not with bitcoin.

a matter of consistency, it must be admitted that gold has achieved that, but bitcoin is not and will not be consistent because there lies the advantages of inconsistent bitcoin so that people want to use it as an investment with good analysis so as not to suffer losses.
not yet from the price it is clear that there will be a difference, gold is not very profitable, in contrast to bitcoin can be very profitable. although maybe it will be the other way around it can also experience big losses and not to gold.

[LUCKMCFLY]

Gold is an asset very different from Bitcoin, the similarity between them is that they represent a given value in money, but the history of Gold is of many years, that of Bitcoin is being formed, what can be focused on is that due to the circumstances of This year, both Gold and Bitcoin have become one of the best targets for Investors, some prefer Bitcoin over Gold because it represents the future, we may see a good rebound in Gold in 2021, although the correlation between They are low, in a short-term temporary it is much more noticeable.

[BrewMaster]

like always there is not even the smallest correlation between the two markets. and like always the two markets move independently but as soon as the two charts look similar even for 10 seconds we see a lot of people start linking the two together.

the stupid thing is that it doesn't stop at gold, we have seen people try to find a link between bitcoin and a ton of other things. the most recent one was the US stock market which we can see died like every other wrong speculation.

[Heisenberg_Hunter]

I don't really find a co-relation between Gold and Bitcoin. Both are completely different assets and are never related to each other except on investment practices. When satoshi launched the network back in 2009, many speculated that the model mimicked gold and had far less relation with working as a global currency. But recently we have been seeing bitcoin is becoming the gold standard just because of it's deflationary model and the store of value perspective. With recent huge investments from Square and Microstrategy, we don't see a downfall in the near future unless and until the new variant of COVID rises in power and doesn't slow down for the vaccine.

On top of everything, USD is weakening with the fear of inflation and this is probably another contributing factor to Bitcoin but Gold in the short term perspective doesn't seem to have any advantages like these. These are more than enough to prove that Bitcoin is slowly following Gold and may be in 2-3 decades we might be completely moving over to HODLing strategies if Lightning Network isn't adopted as mainstream technology. To break this Gold and Bitcoin relation, we need to bring in more Lightning Network and side-chain adoption in near future as like Visa has been helping to scale bank transactions through VisaNet.

[exstasie]

like always there is not even the smallest correlation between the two markets. and like always the two markets move independently but as soon as the two charts look similar even for 10 seconds we see a lot of people start linking the two together.

If you look at the last 2 years of data, there is a significant positive correlation between gold and BTC. It's not the strongest relationship in the world, but "not even the smallest correlation" is provably not true.

the stupid thing is that it doesn't stop at gold, we have seen people try to find a link between bitcoin and a ton of other things. the most recent one was the US stock market which we can see died like every other wrong speculation.

No, it didn't. Stocks have been strongly correlated to BTC for Bitcoin's entire life. They've been especially correlated this year, since the March crash.



Diverging for a short while doesn't mean the correlation is dead. No two assets are perfectly correlated. That is an unrealistic expectation.

[Smartvirus]

like always there is not even the smallest correlation between the two markets. and like always the two markets move independently but as soon as the two charts look similar even for 10 seconds we see a lot of people start linking the two together.

the stupid thing is that it doesn't stop at gold, we have seen people try to find a link between bitcoin and a ton of other things. the most recent one was the US stock market which we can see died like every other wrong speculation.

While going through OP and other replies that precedes it, i was expecting some to come up with the idea you just presented because, my idea of the two assets were looking too distinct and you just confirmed it in your reply. Gold and Bitcoin functions independently as i know it and what i hoped to see on that chat is an exchange of baton, a situation where gold drops or sells as bitcoin is appreciating or buying. They both are assets that function in the same way just on different bases and i preference in one should affect the other.

[PerfectCircle]

Bitcoin can be compared to gold but the truth is gold is gold, nothing comes close to it, gold have stable value and less volatile unlike bitcoin, also gold have been around for thousands of years and bitcoin is just 10years old

[pooya87]

"Follow" is a strong word!
You are just seeing some tiny similarities here and there with two markets that dropped during the Corona virus pandemic and one of them continued to rise up setting new records while the other only recovered. I wouldn't even call that similarity let alone one "following" the other.

There is also the fact that with the inflation hitting the world, every asset will go up in value. Gold being one of them. Meanwhile bitcoin adoption keeps growing hence its price goes up. Again this is in no way "following" since two different markets are rising in entirely different sizes and for entirely different reasons.