Gold may soon surpass bitcoin

Welcome to Extreme Investor Network, where we bring you the latest insights and analysis on all things investing. In today’s blog post, we take a closer look at the potential for gold to outpace bitcoin as the flagship cryptocurrency hovers around the $70,000 level.

According to Wolfe Research, both gold and bitcoin have been trading in tandem with each other for the past month, reaching new records even as the stock market trades near its highs. While bitcoin has historically been seen as a ‘risk asset’ attracting excess liquidity from retail investors, gold may have a chance to shine.

Wolfe’s managing director, Rob Ginsberg, notes that the gold vs. bitcoin ratio is nearing support and oversold on a weekly basis. If bitcoin continues to consolidate in the $60,000–$73,000 region, it could create an opportunity for gold to start outperforming.

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Bitcoin recently hit an all-time high of $73,679 before pulling back to around $60,800 last week. As it looks ready to reaccelerate, Ginsberg acknowledges that selling pressure tends to strengthen above $70,000. The digital gold narrative surrounding bitcoin has regained momentum, especially after its correlation with stocks decreased significantly in March 2023.

The rally in bitcoin this year was initially fueled by anticipation of approval for spot bitcoin exchange-traded funds in the U.S. and the upcoming bitcoin halving in late April. While the cryptocurrency market remains unpredictable, investors can leverage this information to make informed decisions when it comes to their investment strategies.

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Stay tuned to Extreme Investor Network for more expert analysis and insights on investing opportunities. Don’t miss out on our unique perspectives and valuable information to help you navigate the ever-changing landscape of the financial markets. Join us as we explore the exciting world of investing and seize new opportunities for financial growth.

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