However, during the same time Gold prices managed to break above $1500 again (3rd time this year). Hence, technically gold has held onto it’s gains of the year, reversing its bearish sentiments in October.
Moreover, the equity markets are performing exceptionally well as it continues to breach past All-Time Highs. The S&P 500 index in currently at $3240, with a 28% annual rise. In the past two months, it added 6.4% value to the ATH levels attained in October above $3000.
Gold Buff, Peter Schiff who stands against both FIAT and Bitcoin, he notes sarcastically,
Bitcoin is not disappointing those who claim its true value is that it’s a non-correlated asset. Every asset class in the world is rallying into the end of the year except Bitcoin. Not sure what value this actually adds, but at least # is meeting expectations on something!
Price Shuns both Popular and Unpopular Opinion
The correlation index between gold and the equity market is usually negative(or inverse). In 2018 it was -0.35 compared to a positive value above 0.2 in 2019. Nevertheless, the rise in these markets have also been accompanied by rise in national debt across the globe.
Moreover, the current trend is contrary to all believes in the financial and crypto markets as well. Thomas Lee, financial analyst from Fundstrat had noted that Bitcoin performs better during stock market rallies. He said,
– a reminder of the ‘unpopular’ opinion that the bitcoin performs best when S&P 500 rallies. – best years Bitcoin when S&P 500 return >15%.
$BTC mostly retail, thus, mostly ‘risk-on’
Nevertheless, on a longer time frame, Bitcoin has gained about 200% since the beginning of the year. On an annual or decade end comparison Bitcoin is out-performing most of these assets.
Furthermore, even folks at CNBC noted that it protected the long-term bullish trend on a logarithmic scale.
Do you think that the bulls will join the Bitcoin markets as well? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com