...I think there is greater positive correlation between BTC and Risk On assets like equities, so if equities correct, BTC is likely to follow suit. The only exception would be news of Trump support for it in a meaningful way.
...BTC certainly has greater volatility relative to Gold, so with it you can make more and also lose more. The Trump trade 'magic' has waned and market narratives have shifted again towards higher for longer rates and that has had a negative effect on BTC given its significant recent rise.
...Gold on the other hand tend not to drop as much, but consolidates, rise sharply then consolidates again...in an upper rising channel, but history has shown that Gold won't drop as much when equities tank.
...so how this ratio moves from here depends on how well equities does over the short and medium term. If equities pivots higher, BTC would do better, but if equities correct, then Gold will do better.
...tonight decides in just about an hour when US NFP is released.
In an effort to dispel accusations of bias and being 'pro-gold, anti-Bitcoin', I wanted to show you the simple chart that tells us when to favour one over the other.
