Bitcoin Fares a Better Than Gold During Anti-Fiat Pullback

Bitcoin, BTC/USD Talking Points:

• Bitcoin continues to grind away at the 80k level even as rate hike expectations have built around the Fed.
• Gold on the other hand has pulled back more aggressively, even though it had broken out well before the Bitcoin move in August.

In an earlier article I looked at the pullback in gold, and while bulls still have an open door there, the fact of the matter is that the retracement there is more aggressive than what’s shown in Bitcoin. And at this point the question must be asked whether we’re in one of those periods where Bitcoin is situated to outperform gold as an anti-fiat vehicle. This would be similar to what showed in August of 2020, just after gold hit $2k for the first time. Bitcoin was struggling to get back above the $12k marker but that’s when BTC/USD came to life in a very big way. And as gold continued to range and hold resistance around $2k for the next three-and-a-half years, multiple life cycles showed in the crypto currency but it never fell below that same $12k marker.

And then in the aftermath of the 2024 Presidential election, gold had been rallying since jumping from the $2k level in February. Suddenly, gold found resistance about a week before the election and that’s when Bitcoin, again, came to life in a very big way, eventually jumping above $100k before ultimately finding resistance last year at $125k.