While bitcoin has received all the headlines this summer as it marches towards $5,000, but the price of gold has been moving up most of the summer.
The precious metal has risen $150 an ounce since the beginning of July to trade at $1,360 on Friday morning.
On July 7, bitcoin was trading at $2,521 and gold was at $1,217. So bitcoin soared 46%, while gold rose 10.5% over the same period. A contributing factor to both assets is that the dollar index has weakened 4.7% over the summer.
The ancient relic’s acceleration recently has more ties to the weakening dollar index right now, but I believe as more currency traders pile into bitcoin trading the price movement correlation between the crypto and dollar will have a more of an impact.
I’m very interested in the moves in both bitcoin and gold over the next 6 weeks as the markets enter the fall and its historical liquidity tightening. I believe we will see $1.500 on gold and the $5,000 level will be the floor on the price of bitcoin in the coming weeks.