When Does Bitcoin Decouple From Gold?

[awday]

I have a fair amount of gold bullion built up and have been seriously thinking of putting some of it into Bitcoin.

I am new to Bitcoin so don't have the fluctuation patterns down. From what I can tell it seems to tightly correlate with gold. Under what circumstances may bitcoin, ideally for me, go down while gold goes up? Any conjecture on this? Thanks.

[mk4]

They aren't even THAT correlated though. Yes, there are times that they move together, but still.

Here's bitcoin vs gold:

■ Bitcoin
■ Gold


src: https://www.tradingview.com/chart/?symbol=BITSTAMP%3ABTCUSD

Personally when investing in bitcoin though, I'd suggest taking a look at fundamentals rather than charts.

[avikz]

I have a fair amount of gold bullion built up and have been seriously thinking of putting some of it into Bitcoin.

I am new to Bitcoin so don't have the fluctuation patterns down. From what I can tell it seems to tightly correlate with gold. Under what circumstances may bitcoin, ideally for me, go down while gold goes up? Any conjecture on this? Thanks.

From the chart shared by Mk4, you can see gold us not at al correlated with bitcoin anyhow! There are some instances obviously but that doesn't alow you to conclude the correlation! Gold is mainly used for capital protection while bitcoin's price is far more fluctuative than gold! If you are building an aggressive portfolio, bitcoin is an ideal choice! While you also need to have gold to support the capital if the market goes down for whatsoever reasons!

[The Cryptovator]

First of all, I want to clarify to you that, technically Bitcoin isn't correlated with Gold anyway. So as usual price trend wouldn't be correlated as well. It seems you put all of your eggs in one basket. Since you know about the bitcoin then I believe it was a golden opportunity for you to invest a part of your portfolio into the bitcoin. Gold is a real asset exist in real life, Bitcoin is a virtual currency that exists only in virtual life. You can't compare both of them, because one is currency, another is assets.

Remember, Bitcoin is a much volatile currency, it would pump or drop anytime. So, only invest what you can afford. Because it would happen that you will have to for a year to get benefits from Bitcoin.

[BrewMaster]

From what I can tell it seems to tightly correlate with gold.

that is because you looked at a very tiny portion of the chart while being too zoomed in. bitcoin has been traded for about 10 years now and if you look at its charts (zooming out) you can see that there has never been even a small correlation between the two ever.

[Reosta_]

I have a fair amount of gold bullion built up and have been seriously thinking of putting some of it into Bitcoin.

I am new to Bitcoin so don't have the fluctuation patterns down. From what I can tell it seems to tightly correlate with gold. Under what circumstances may bitcoin, ideally for me, go down while gold goes up? Any conjecture on this? Thanks.

First of all, you should know that Bitcoin is totally different from gold. It is too volatile. You shouldn't panic-sell with big changes in the price and be patient. When you look at charts, you will see gold is way more stable than Bitcoin. Firstly you should decide on what you want. Do you want to take the risk and try to make a bigger profit compared to gold? If I were you, I would definitely invest in Bitcoin too. I think it can be more profitable in the long run.

[yhiaali3]

Although I am a fan of Bitcoin, but I do not think it can compare to the stability of gold, it is true that Bitcoin is called digital gold, but so far there are large fluctuations in prices and lack of widespread and great concerns about Bitcoin and all this makes gold much better and more stable.
I can advise you to convert only a portion of the gold into Bitcoin but I do not advise you to convert all of the gold into Bitcoin as this may carry a high risk.

[20kevin20]

Because Bitcoin has different characteristics than Gold and can be used differently, it is kinda weird how it is going similar to both stocks and Gold almost at the same time. I highly suspect Bitcoin is going to have its own way, unlike other assets. If until a decade ago you could classify stocks/equities into different categories, I just suspect Bitcoin is now a new one.

What makes Bitcoin and Gold sometimes go opposite ways while other times they're so similar is mind-boggling to me as well. I keep suspecting that it's the immaturity of Bitcoin markets, but let's not forget other very important aspects such as Bitcoin's halvings, exact supply and so on. If you want something that always goes against Gold, Bitcoin may not be it. It's riskier than other assets that have been traded for long enough to know their reaction to positive/negative events.

[CODE200]

Although I am a fan of Bitcoin, but I do not think it can compare to the stability of gold, it is true that Bitcoin is called digital gold, but so far there are large fluctuations in prices and lack of widespread and great concerns about Bitcoin and all this makes gold much better and more stable.
I can advise you to convert only a portion of the gold into Bitcoin but I do not advise you to convert all of the gold into Bitcoin as this may carry a high risk.

it's not mainly on fluctuations. One is investing to something in order to generate profit. Every investment has its own advantages and disadvantages and you just have to make use of its potential in order to acquite benefit. Investing half of it is advisable if you are seeking for investment diversification but if you are just aiming for bigger profit, you are not mandated to move from one investment to another. You may think of a way in order to get bigger profit on your investment without moving to another one. But yeah, it is a good option if you cannot make things work if ever.

[davis196]

I have a fair amount of gold bullion built up and have been seriously thinking of putting some of it into Bitcoin.

I am new to Bitcoin so don't have the fluctuation patterns down. From what I can tell it seems to tightly correlate with gold. Under what circumstances may bitcoin, ideally for me, go down while gold goes up? Any conjecture on this? Thanks.

What do you mean by "fluctuation patterns"?Do you think that the Bitcoin price is so predictable?
Anyway,it's always a good move to diversify your assets and increase the profitability/risk ratio a little bit(but not too much).
Thinking that the Bitcoin price is somehow correlated to the gold price is simply wrong.The two assets have nothing in common,except the fact that they are often compared by the members of the crypto community.

[Kakmakr]

I do not think there are any direct correlation between the two and if there is .. it might simply be that both of these investments are perceived as being a "safe haven" or a "store of value" investment option.

So when there are some volatility in the traditional Stock markets and equities, traders tend to look for safe havens and a lot of them shift some investments into Bitcoin and Gold.

I think a balanced portfolio should include a good mix between "low risk" or stable investments like Gold and Silver and also a slightly "higher risk" investment into Crypto currencies like Bitcoin.  

[Wind_FURY]

OP, my opinion. Sell your Gold near the top of this cycle, then buy Bitcoin's dip. Bitcoin is MORE volatile than Gold. Gold's dip will definitely be only a blip for Bitcoin's dips, making you buy more 1 for 1 than if you sold Gold, bought Bitcoin today.

[fauzan123]

I have a fair amount of gold bullion built up and have been seriously thinking of putting some of it into Bitcoin.

I am new to Bitcoin so don't have the fluctuation patterns down. From what I can tell it seems to tightly correlate with gold. Under what circumstances may bitcoin, ideally for me, go down while gold goes up? Any conjecture on this? Thanks.

I think bitcoin is not the same as gold, because gold is the precious metal there is no certain amount of the total circulating supply that can be calculated, of course this is because everything is on the real side where it is actually mined.

However, the bitcoin we know has seen how much the total supply has been circulated and it seems that it will not be easy to add to the total supply that already exists, so this is what causes the price of bitcoin to be more expensive, because the less the total supply provided, the smaller the miners will get so that the movement of demand will increase.

Can it be side by side? I think it is possible that in the future bitcoin and gold will coexist, because each other's needs are urgently needed in the future for both civilians and the state.

[slaman29]

Keep your gold, and instead just set aside your next buys to be Bitcoin. Unless you're thinking to move more of gold into Bitcoin. Correlation is there but Bitcoin is still a new market after all, but is starting to break away from stock market correlation and moving in its own. Gold goes up when Bitcoin goes down when banks start buying up, but as we can see, now banks are also buying BTC!

[jemimah_f3]

They are different assets but both serve one purpose to store value, BTC is digital gold, they will both exist for near future.

[romero121]

If you're with plans to get into bitcoin completely, then it is good to sell your gold now. Compared to the beginning of the year, there is high percentage of growth with gold. Selling gold by now is a better choice, and for buying bitcoin it isn't the right moment.

The crypto market looks progressive, so the chance for massive drop is very low. Or else the better choice is to have gold as collateral and get loan. With the money buy bitcoin, because when the market turns bullish one can get a big profit above the interest being paid on the loan.

[mk4]

If you're with plans to get into bitcoin completely, then it is good to sell your gold now. Compared to the beginning of the year, there is high percentage of growth with gold. Selling gold by now is a better choice, and for buying bitcoin it isn't the right moment.

Or better yet, just move some of your gold allocations to bitcoin.

The crypto market looks progressive, so the chance for massive drop is very low.

Man, I'm personally a huge bitcoin bull, but this is definitely not it. While bitcoin can rise 10-20% in a day out of nowhere(just like it just did recently), the opposite is just as possible(just like what happened a lot of times earlier this year).

[BrewMaster]

Man, I'm personally a huge bitcoin bull, but this is definitely not it. While bitcoin can rise 10-20% in a day out of nowhere(just like it just did recently), the opposite is just as possible(just like what happened a lot of times earlier this year).

it is never out of nowhere though. whenever we had a big rise like 30% in one day it has been because price wanted to go up slowly (like 5% in a day) but it was prevented by manipulators and newbies so it turn into a compressed spring that when let go it sprung up to the sky. it is all the build up that blows up.
same with drops, if it is prevented from going down if it is meant to go down it suddenly crashes. but there is another case in drops which is when the panic sells hit and they are also immediately followed by a reversal rise.

[mindrust]

When JPM and other scammers go bankrupt. Wall Street bankers will always use power to manipulate any market they can because they can do it just like they do it to gold. So to answer your question: Never.

If JPM goes down, some other big bank will replace it.

[Reid]

it is never out of nowhere though. whenever we had a big rise like 30% in one day it has been because price wanted to go up slowly (like 5% in a day) but it was prevented by manipulators and newbies so it turn into a compressed spring that when let go it sprung up to the sky. it is all the build up that blows up.
same with drops, if it is prevented from going down if it is meant to go down it suddenly crashes. but there is another case in drops which is when the panic sells hit and they are also immediately followed by a reversal rise.

I agree.
Man, is this starting to be a "Trading Discussion"?   jk.
Looks like the panic sellers are doubting now. What could they be thinking? Do they want more?

OP, for me, I don't doubt when it comes to accumulating more bitcoin.
Maybe you should look at chart histories again and try to compare them again.
IMO, it's way far from how gold moves.

Thanks, mk4 for the chart.