The 90-day correlation between Bitcoin and Gold just dropped to -0.34. That's the most negative level since March 2020.
Remember March 2020? Gold surged 8%, while $BTC plunged 38%.
It feels like the same story now. Gold is heading toward $5,600, silver has jumped 241%, and Bitcoin is down 13%. Older investors are rushing into precious metals as safe havens. If the market faces a big shake-up, leveraged traders will pull out their funds. They won't sell their gold—they'll dump the easier-to-sell asset: Bitcoin.
But here's the plot twist: This difference is usually a good sign for Bitcoin, just not right away.
Every time Bitcoin shows a negative correlation with gold, it often leads to a major Bitcoin rally in 4-6 months. For example: In March 2020, it sparked a 600% rise by April 2021. In December 2016, it kicked off the 2017 parabolic surge.
When gold and silver hit their peaks in the next 3-6 months, that money will need a new place to go. Not back to stocks. Not into bonds. It'll flow into the one liquid, uncorrelated asset that got left behind: Bitcoin.
So, anyone buying Bitcoin now to catch up with metals before the money rotates to Bitcoin?
#BTC #PAXG #BTCVSGOLD #BinanceSquareWithYou
