This Tuesday, the price of gold ascended to a new zenith, reaching $2,266.85, marking the third consecutive day of record highs. The precious metal started the day trading just under $2,250, but surged to set a new record, slightly above its previous day’s peak. Amidst this surge in gold prices, the cryptocurrency sector, particularly Bitcoin, is perceived to be on the brink of significant gains.
Ted, a prominent figure in the crypto domain known on Twitter as @tedtalksmacro, shared his insights through Talkingmacro. He shed light on the present volatility seen in the crypto markets, interpreting these fluctuations not merely as instability but as a beacon of opportunity.
Ted articulated, “Short-term volatility = Opportunity. Amidst this move lower in crypto, I’m anchoring my view around the macro picture into year-end… it screams HUGE opportunity.” His perspective is deeply rooted in the broader economic indicators, specifically pointing out the continuous debasement of the US dollar, which has notably favored the ascent of gold and, by extension, suggests a bullish forecast for BTC.
“The narrative is very, very strong for gold and therefore BTC,” Ted explains, attributing gold’s ascendance to the weakening dollar, diminishing yields, and escalating inflation—all factors compounded by accelerated fiscal spending and anticipated policy easing by the Federal Reserve. This confluence of factors not only bolsters gold’s appeal but also strengthens the case for Bitcoin as its digital counterpart in this new financial era.
Highlighting the inherent correlation between gold and Bitcoin, Ted underscores, “A correlation that I’ve long pointed to… I believe BTC will catch back up to gold in due course.” Despite the apparent divergence in the performance of these two assets, he attributes it to temporary market dynamics like trader positioning, which he believes is particularly affecting Bitcoin at present.
Nonetheless, the foundational reasons for both assets to surge—lower yields, higher inflation, and for Bitcoin specifically, the upcoming halving event and the inflows into the spot ETFs—remain robust.
Addressing recent market movements, Ted cautioned about the excessive optimism among traders towards leveraged long positions at the week’s start. This over-leverage has since been corrected, leading to a healthier market condition. “We have OI weighted funding back at baseline levels – a very healthy development to get ready for the next leg higher,” he noted, indicating a reset that could pave the way for Bitcoin’s next growth phase.
The cautious optimism is also tinged with an eye towards upcoming key US employment data, with Ted stating, “I’m wary of key employment data out of the US on Friday, however, I’m expecting the bulls to pick up the pieces here soon.” This reflects a belief in the resilience of the bullish sentiment towards Bitcoin, supported by a macroeconomic backdrop that favors long-term growth.
Bitcoin Can’t Be Debased
In a similar vein, Bitcoin advocate Stack Hodler contributed to the discourse on X, highlighting the pivotal shift in investor confidence from US bonds towards assets deemed more secure against inflation, such as gold, equities, real estate, and notably, Bitcoin. He remarked:
Every investor needs to understand this one chart. Gold and US bonds used to move together as conservative store of value assets. But then the US spent itself into a trap and the market called BS on US bonds in 2020. This is a big deal […] The market decided that with multi-trillion dollar annual deficits […] US bonds will only be paid back in ‘printed’ money.
This critique of fiscal policy underlines the growing skepticism towards traditional fiat currencies and debt instruments, positioning Bitcoin as an alternative that offers scarcity and resistance against debasement. “Bitcoin is finite property that can’t be debased… Ignore the day-to-day volatility,” Stack Hodler advises investors, underscoring the significance of understanding Bitcoin’s long-term value proposition against the backdrop of fiat currency debasement.
His message is a clarion call for patience and strategic investment in Bitcoin, advocating for a prudent approach that focuses on accumulation over time.
At press time, BTC traded at $65,729.
Featured image created with DALL·E, chart from TradingView.com
