This Tuesday, the price of gold rose to a new zenith, reaching $2,266.85, marking the third consecutive day of all-time highs. The precious metal started the day trading just under $2,250, but rose to set a new record, slightly above the previous day's high. Amid this surge in gold prices, the cryptocurrency sector, particularly bitcoin, is perceived to be on the verge of significant gains.
Gold up, bitcoin down = big opportunity
Ted, a prominent figure in the crypto domain known on twitter as @tedtalksmacro, shared his insights via Talkingmacro. He shed light on the current volatility seen in cryptocurrency markets, interpreting these fluctuations not only as instability but as a ray of opportunity.
Ted twitter.com/talkingmacro_/status/1775128984852091289″ target=”_blank” rel=”noopener nofollow”>articulate, “Short-term volatility = Opportunity. Amid this bearish move in cryptocurrencies, I'm setting my sights on the macro outlook through the end of the year…screams HUGE opportunity.” His outlook is deeply rooted in broader economic indicators, specifically noting the continued devaluation of the US dollar, which has notably favored the rise of gold and, by extension, suggests a bullish forecast for btc.
“The narrative is very, very strong for gold and therefore btc,” explains Ted, attributing gold's rise to the weakening dollar, declining yields and escalating inflation, all factors compounded by accelerated fiscal spending and anticipated policy easing by the Federal Reserve. This confluence of factors not only reinforces the appeal of gold, but also strengthens the case for bitcoin as its digital counterpart in this new financial era.
Highlighting the inherent correlation between gold and bitcoin, Ted stresses: “A correlation I have noted for a long time… I believe btc will catch up to gold again in due time.” Despite the apparent divergence in the performance of these two assets, he attributes it to temporary market dynamics such as trader positioning, which he believes is particularly affecting bitcoin currently.
However, the fundamental reasons for both assets to rise – lower yields, higher inflation and, in the case of bitcoin specifically, the upcoming halving event and capital inflows into spot ETFs – remain strong. .
Addressing recent market moves, Ted warned of excessive optimism among traders towards leveraged long positions at the start of the week. This excess leverage has since been corrected, resulting in a healthier market situation. “We are back to OI-weighted funding at baseline levels, a very healthy development to prepare for the next bull leg,” he noted, indicating a reset that could pave the way for bitcoin's next phase of growth.
The cautious optimism is also tinged with attention to upcoming key US jobs data, with Ted stating: “I'm cautious on Friday's key US jobs data, however, I expect the bulls to turn recover here.” soon.” This reflects the belief in the resilience of bullish sentiment towards bitcoin, supported by a macroeconomic context that favors long-term growth.
bitcoin cannot be devalued
Similarly, bitcoin advocate Stack Hodler contributed to the discourse on roots and, in particular, bitcoin. He twitter.com/stackhodler/status/1775099188683932146″ target=”_blank” rel=”noopener nofollow”>commented:
Every investor should understand this chart. Gold and US bonds used to move together as value-conserving assets. But then the United States fell into a trap and the market called US bonds nonsense in 2020. This is a big problem (…) The market decided that with multi-trillion-dollar annual deficits (…) US bonds will only be repaid in “printed” money .
This criticism of fiscal policy underscores the growing skepticism towards fiat currencies and traditional debt instruments, positioning bitcoin as an alternative that offers scarcity and resistance against debasement. “bitcoin is a finite property that cannot be degraded…Ignore day-to-day volatility,” Stack Hodler advises investors, underscoring the importance of understanding bitcoin's long-term value proposition in the context of asset debasement. fiat currency.
His message is a call to action for patience and strategic investment in bitcoin, advocating a prudent approach that focuses on accumulation over time.
At the time of this publication, btc was trading at $65,729.
Featured image created with DALL·E, chart from TradingView.com
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