ibankbitcoins

WHEN GOLD IS TAKING A DUMP, HOW DOES BITCOIN PERFORM?

BITFINEX:BTCUSD   Bitcoin / Dollar
Here is the 6month chart of gold             vs bitcoin . As you can see, its pretty correlated on a day to day basis. Gold             is getting crushed by the strengthening of the dollar because the Fed's announcement of NO QE4 has sparked huge interest in dollars.

Many traders have pointed this correlation out in the past. In fact, many holders put their weights as equals! While I disagree with that, which could take a whole post, I cannot help but look at this chart and say: HEY! Which way is bitcoin going to go?

I do live trades and bitcoin market analysis daily. Follow me on my bitcoin trading blog and twitter: ibankbitcoins.com, www.twitter.com/ibankbitcoins
ChartArt
2 years ago
I also looked at the correlation between gold and bitcoin in the past and I noticed that the correlation varies a lot. Sometimes they correlate almost 1:1 when Bitcoin is dropping with no end in sight (this happened also in 2013) and when a bottom for BTC was found the correlation stopped for months until it resumed again during aimless price discovery. Basically I don't expect Bitcoin to drop solely based on gold dropping.
+1 Reply
timwest PRO
2 years ago
I like your chart and always appreciate inter-market analysis. The only issue is that I don't know that these markets are correlated or even related in any way.
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MoonTrader timwest
2 years ago
I believe it's reasonable to think they're related. Both gold and bitcoin seem to be inversely related to the dollar. When the strength of the dollar increases, the price of commodities decline. Since it's reasonable to believe that bitcoin is inversely related to the strength of the dollar, it logically follows that BTC and gold may correlate based on their shared inverse relationship with the dollar.
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bnzn_qwazar
2 years ago
hey - take nov-dec'13 of this chart ;)
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