Opposites Attract – Gold Can No Longer Ignore Bitcoin
Disclaimer: Your capital is at risk. This is not investment advice.
Atlas Pulse Gold Report Issue 99;
The US Government holds 261.5 million ounces of gold worth $680 billion and 203,222 Bitcoin worth $18.9 billion. Is that enough to start a strategic reserve? President-Elect Trump thinks it is. The confiscated Bitcoin will no longer be held at the crime bureaus but by the US Treasury, presumably in Fort Knox. Bitcoin and Gold will sit side by side.
Highlights
| Digital Gold | Opposites Attract |
| Technicals | Past Gold Peaks and Corrections |
| Macro | Real Rates, Dollar |
| Flows | Why Are the Germans Selling Gold? |
| BOLD ETF | Balancing Risk |
Opposites Attract
Since the end of October, the gold price has fallen by 7% in dollars and 4% in euros as the dollar has surged. While gold is giving back some of this year’s spectacular gains, Bitcoin has taken over. As I have long said, these assets take it in turns, and the baton has been handed back to Bitcoin. The inverse moves between Bitcoin and Gold in November have been remarkable.
Bitcoin and Gold – 10 Days with Gold Inverted
Bitcoin and Gold do not have a perfect negative correlation but a persistent low correlation. That is sometimes positive when the dollar had decisive moves in years such as 2018, 2020, and 2022. The correlation has occasionally been negative, as it is now, but less frequently. The ten-year average correlation was 9%, which is minimal. This is why Bitcoin and gold are such a natural pairing, as holding uncorrelated assets side by side provides natural diversification.
Bitcoin and Gold Correlation Over 26 weeks – Past Decade
