Bitcoin Set for Significant Rise as Gold Correlation Indicates Surge in Late November
Crypto News

Bitcoin Set for Significant Rise as Gold Correlation Indicates Surge in Late November

Bitcoin's rising correlation with gold could indicate substantial gains for the cryptocurrency in November.

Bitcoin has displayed a strong correlation with gold, albeit with an 8-week delay, as mentioned by investor and analyst Ted Pillows. This indicates that Bitcoin’s price could follow gold’s trajectory approximately two months later, predicting a potential surge around late November.

“Currently, gold is experiencing record highs, suggesting that Bitcoin is likely to follow suit soon,” said Pillows, while also cautioning about a possible market correction before the anticipated fourth quarter surge for cryptocurrencies.

Earlier this week, gold prices reached an all-time high of $3,900 per ounce.

Insights on Bitcoin’s Future

Pillows observed:

“The correlation signifies that as gold prices rise, it may trigger a similar response in Bitcoin shortly afterward. Just recently, gold reached another all-time high, which may foreshadow Bitcoin’s imminent uptick.”

Furthermore, if the trend continues, Chris Burniske, a venture capitalist, mentioned that if Bitcoin aims to catch up with gold, the current moment might be the right time.

“Gold has started this surge, but we all understand how it will ultimately conclude,” remarked trader Luke Martin.

In another analysis, Miles Deutscher indicated that increasing gold prices act as a buoy for Bitcoin, hinting that it will rise following gold’s surge. Notably, gold’s price has surged by 47% this year, contrasting with Bitcoin’s modest 27% increase.

“The upside for Bitcoin is clear: gold will eventually stabilize,” commented Charlie Morris from ByteTree, alluding to upcoming market dynamics.

Additionally, Joe Consorti of Theya observed that Bitcoin usually reflects gold’s trends with a lag of 100-150 days. He stated: “When monetary supply increases, gold picks up on it first, followed by Bitcoin.”

Prospects of Gold

Gold has seen a spike in price due to trade instability induced by tariffs from the previous administration, along with substantial demand from central banks. As geopolitical risks and economic uncertainty rise, investors are gravitating towards this stable asset.

Good news for cryptocurrency enthusiasts: historically, Bitcoin tends to align itself with these movements in gold. As we approach the end of the year, both price movements and seasonality trends suggest promising months ahead for the digital currency.

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