A widely followed crypto analyst and trader is forecasting that Bitcoin (BTC) will start outperforming gold.
In a new video update, the host of InvestAnswers tells his 565,000 YouTube subscribers that the top crypto asset by market cap should outpace gold over the coming months, as he says the precious metal looks overextended following its parabolic rally to $3,500.
“If you look at the steady correlation between Bitcoin and Nasdaq, it is extremely tight because Bitcoin is considered a risk asset, [while] gold is considered a risk-off asset. But here, if you look at the Bitcoin/gold correlation, it fluctuates very heavily. Half the time, not correlated; half the time, it is correlated.
So there’s no signal of direct correlation and Bitcoin has already had a great post-halving, and in fact, we had hit a new all-time high before the halving, which has never happened before with Bitcoin. But its correlation with gold remains low.
Now, if I look at this chart and just like a caveman would, what do I interpret? I expect the correlation to increase with gold as the broader dynamics of the market will shift as well. I also believe gold is overbought, so I see gold mean-reverting and I see Bitcoin going up versus gold over the next six months.”
InvestAnswers says a summarized interpretation of his analysis would be that the flagship digital asset is lagging behind gold and will start to outpace the precious metal during the next six months.
BTC is trading for $93,870 at time of writing, a fractional decrease during the last 24 hours while gold is valued at $3,283 per ounce, a marginal decrease on the day.
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