Gold and Bitcoin are suddenly diverging
Bitcoin down 6.3%, Gold up 1.2%
Gold bugs and Bitcoin bulls have found common ground in the past two months. The combination of slowing growth, lower rates and trade fears have boosted both.
In general, they have moved in lockstep -- albeit with much larger percentage moves in BTC.
Lately though, we've seen the correlation diverge and today the move is stark with both posting large moves, but in opposite directions.
Gold settled today at a six-year high and is only a few dollars away from record intraday highs. Bitcoin in contrast is consolidating in the $9000-$14000 space.
I think if global risks continue to persist that gold is a slam dunk. It's probably the same for Bitcoin but the drop in the past two days makes me less confident.