Analyst Predicts Bitcoin (BTC) Above $50K Based on Gold Correlation
TechDev’s self-titled graph analyst, famous for his analysis on twitterpublished its most recent prediction: the gold can pull the Bitcoin (BTC) for prices above US$ 50 thousand if the correlation with the commodity continues.
what if #Bitcoin continues to follow Gold / DXY ? pic.twitter.com/DivzFw3TAb
— TechDev (@TechDev_52) January 26, 2023
Gold has been appreciating since the beginning of the year, and it surpasses the Nasdaq in correlation with the price of Bitcoin. The price movement of both is really quite similar.
The analyst’s followers are divided. Some say it makes sense since cryptocurrency is seen as digital gold. However, others call the graphist insane, and show that the correlation was once stronger between the two.
Bitcoin’s correlation with Nasdaq is 0.73 – on a scale of -1 to 1 – while gold’s is at 0.81.
The year 2022 was marked by the intense correlation of Bitcoin with the nasdaqthe technology index of U.Sand precisely the decorrelation with gold.
Gold analyst criticizes comparison
The correlation makes gold analysts uneasy, as the vast majority are critical of bitcoin. Peter Schiff, defender of the precious metal, and known for criticizing the cryptocurrencycomments that the correlation of both is for different reasons.
Both #gold and #Bitcoin are up in 2023, but they’re rising for opposite reasons. Gold is rising as a hedge against #inflation and a weaker #dollarwhile Bitcoin is rising with other high-risk assets as speculators bet that a #Fed pivot will cause a rally in 2022s biggest losers.
— Peter Schiff (@PeterSchiff) January 23, 2023
“Both gold and Bitcoin are bullish in 2023, but they are rising for opposite reasons. Gold is rising as a hedge against inflation and a weaker dollar, while Bitcoin is rising with other high-risk assets as speculators bet a Fed pivot will cause a rebound in 2022’s biggest losers.
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
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