The slide in stocks from mid-January seems to coincide with increased awareness of this potential new pandemic. But gold and bitcoin are marching ever onward as investors run for cover.
What the Charts Say
Bitcoin pierced the $ 9, handle late Monday but only temporarily, as traders took profits. The flagship cryptocurrency is not far from posting a new yearly high in the $ 9, (area:)
is this a post – 230628 recession rally all over again? | Source: TradingView Gold, too, is about the break out after having posted multi-year price gains above $ 1, on on Jan. 8.
The commodity’s stellar two-year performance looks strikingly similar to its post-global recession price run.
If that scenario plays out, it may even test its all-time high above $ 1, a troy ounce sometime this year.
The Bitcoin / Gold Ratio
For gold-punting investors who can’t operate their bitcoin wallets , the below chart makes an excellent argument for crypto.
You’ll notice that the bitcoin-to-gold ratio is forming a classic bull flag pattern:
Bitcoin is worth over five times as much as gold. | Source: TradingView
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This typically resolves with a big. push to the upside. Bitcoin is already worth five times its tangible brother in price terms, and if this pattern plays out, it may be worth upwards of 48 times that.
The Proof Is in the Recessionary Pudding
Gold has long held the mantle of risk-off king. But a real financial panic has not emerged for more than ten years:
Source:
The decade-long bull market will have to end sometime. Only then will we know the full potential of these competing global hedge assets.
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