As the stock market extends its losses, Bitcoin (BTC) has reclaimed the $88,000 level while gold has reached yet another all-time high.
At time of writing, BTC is trading at $88,193, up 5% in the last seven days, prompting some analysts to point out a potential decoupling from traditional markets.
[adinserter block="1"]According to crypto data aggregator Coinglass, over $232 million in positions have been liquidated in the last 24 hours, most of them being traders attempting to short BTC.
While gold is trading at all-time highs at $3,415, BTC is still nearly 20% below its high. But in a new interview on CNBC, Fundstrat chief investment officer Tom Lee says that he’s expecting Bitcoin to play catch-up with the yellow metal.
“I think Bitcoin earlier this year may have been struggling with some of the deleveraging that was happening for institutional investors… Selling what they could, and I think that suppressed Bitcoin, especially over weekends. But now that the deleveraging is done, I think that Bitcoin is going to catch up to gold and Bitcoin’s old high was over $110,000, so I think there’s a lot of room to catch up as sort of a non-dollar asset.”
Longtime Bitcoin bull and founder of Pomp Investments, Anthony Pompliano, recently said that historically, gold tends to lead BTC on rallies for months before the crypto king ultimately catches a bid and embarks on a larger, more volatile price expansion than gold.
“Nobody really knows why that happens. My guess would be that a lot of the central banks and institutional investors are either not approved to buy Bitcoin or they’re not used to running to Bitcoin in these moments of sort of geopolitical uncertainty. What we do see, though, is when gold runs, about 100 days later or so, Bitcoin not only catches up, it usually runs much harder, so you get that kind of higher volatility.”
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