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Gold is breaking down as Bitcoin might be settling in to become the next go-to safe-haven asset, according to Raoul Pal, cryptocurrency bull and Real Vision CEO.
In a tweet earlier this week, Pal suggested that gold is breaking down against Bitcoin. He suggests that the correlation between Bitcoin and the US dollar as well as Bitcoin against equities will break down too, despite the historic inverse relationship between the cryptocurrency and the dollar.
Gold is breaking down versus bitcoin, as expected cc: @michael_saylor Everyone take note. The next thing I’m expecting is the correlations between BTC and the dollar and BTC vs equities to break down too… let’s see. #Bitcoin pic.twitter.com/RoPUSFbmvZ
— Raoul Pal (@RaoulGMI) October 22, 2020
Over the past month, Bitcoin has risen a whopping 30.36% surging from $10,136 USD to over $13,000 USD. Gold, on the other hand, only saw a 2.25% increase, rising from just over $1,860 USD to little over $1,900 USD.
While Bitcoin has historically risen when the dollar has dropped, the cryptocurrency has maintained healthy growth despite the stock market seeing a steady recovery over the past two weeks.
Why has Bitcoin price risen so rapidly?
There are major several factors which could point to Bitcoin’s uptick in the past month of trading. A massive push for the bulls was PayPal’s announcement that it was offering cryptocurrency support. Just after the news broke, the Bitcoin price surged over 10% hitting $13,000 USD for the first time in over four months.
Also notable is the bullish activity from institutional investment firms. Over the course of just a week, Grayscale added over $1 billion USD worth of cryptocurrency to its assets under management. With Grayscale, Jack Dorsey’s Square, MicroStrategy and Stone Ridge all adding to play major roles in Bitcoin control, the demand for the cryptocurrency from institutions is favourable for the price rising. If institutions continue to add to their funds, we might see a steady uptick from individual investment too if users want to profit from Bitcoin trades before it possibly surges to record highs.
As the price of Bitcoin continues to see healthy growth, breakthrough resistance barriers and gain new support levels the optimism surrounding the token continues too. The positive sentiment has been a major contributing factor to previous rallies, so there’s the possibility that it will continue to grow as a result of the perception of a strong market.