Positive outlook for gold may cause bullish growth of Bitcoin
This year, gold reached a record level of $ 2,000. The correlation between Bitcoin and gold is now at its highest level since 2010, which in turn indicates that the Cue ball is becoming a safe haven asset like gold.
Bitcoin has started a new ascent
The yellow precious metal has been trading sideways in the past few weeks, but according to US Global Investors CEO Frank Holmes, the price movement is forming a bottom. Holmes predicts that gold will reach $ 4,000 regardless of the result of the November US presidential election. Holmes explained:
“The bottom you see in gold looks like the perfect bottom of a Miami beach. It will rise and fall, the DNA of volatility that you can measure over 20, 60 trading days, 12 months. And that was the upper hand when we talked about the time for a correction in early August, three standard deviations more than 20 trading days. Now it’s one standard deviation.”
Since reaching the record level of $ 2,000, gold has not been able to surpass this level and has remained below this value since mid-August. Regardless of the outcome of the presidential election, Holmes remains optimistic about the yellow metal. He added: “some bet on blue, some bet on red, and I bet on gold.”
Standard Chartered’s head of fixed income, Manpreet Gill, said gold’s growth “isn’t quite complete yet.” He said one of the best explanations for why the price of it has soared this year is bond yields.
Average monthly correlation of 70%
BTC and gold have reached an average monthly correlation of 70 percent, which is a record high in recent times. According to Analytics company Skew, this confirms that Bitcoin is a means of saving, given the growing correlation between it and the precious metal. Bloomberg added that the Bitcoin market is too small for many large organizations – $ 200 billion, including Central banks. If Bitcoin’s market capitalization increases, it will look more like a digital version of gold.
Bitcoin is currently trading at $ 11,315. and it’s up more than 3 percent in the last 24 hours. The analyst believes that the PTS may soon make a big step, and in the run-up to this weekend, there may be a breakout that defines the trend. The analyst tweeted:
“I think that given this long state of compression, we will get a big BTC jump before the weekend. This is one of those cases where you need to make a deal quickly, otherwise it will be too late to do anything.”
US stock futures rise on hopes of new stimulus law
U.S. stock futures also rose today as investors remain hopeful of a new bill for potential fiscal stimulus. Dow Jones Industrial Average futures were up 105 points, while S&P 500 and Nasdaq futures were also trading in positive territory.
Hopes for a stimulus are still high, as Nancy Pelosi’s Deputy chief of staff drew Hammill tweeted that House speaker and Treasury Secretary Steven Mnuchin spoke for 40 minutes yesterday. The conversation focused on “determining whether there is any prospect of an early agreement on a comprehensive bill.”