Gold and bitcoin are the two main assets that are gaining in 2020 despite the global pandemic. Gold bug Peter Schiff has always spoken ill of bitcoin but this time he may be admitting that there is a flaw in his forecasts after agreeing that the coin never ‘collapsed’ as gold exploded to its new all-time highs in August.
While commenting on a Twitter exchange with Tyler Winklevoss on September 6, Schiff exchanged words with the Gemini co-founder. They were discussing BTC’s rise to a yearly high of over $12,000 on August 17 and its drop below $10,000 just last week.
While Tyler said that the digital asset’s baseline for all of the future dips would be $10,000, Schiff came up strongly bearish. He said that bitcoin could be consolidating before it crashes. Schiff stated:
“The more the 10K support level is tested, the weaker it gets. Markets rarely give investors that many chances to buy the bottom.”
“I was right on gold, but wrong on Bitcoin. The latter did manage to get through resistance and rally up to $12K, thanks in large part to a ride on gold’s coattails and a massive TV advertising buy by Grayscale. By falling back to $10K Bitcoin quickly returned to a bear market.”
Gold And Bitcoin Skew Analysis
Based on Skew Analytics, this one-month correlation between bitcoin and gold reached a staggering high of 68% in early August. Today, the price of gold is $1,934 per ounce after losing 7.1% since it reached an all-time high of $2,089 on August 6.
Nonetheless, bitcoin is now valued at around $10,250 after losing around 15% since its surge to over $12,000 this year on August 2. The correlation between these two assets has remained around 0-20% for the past two weeks, briefly plunging to 2.6% on September 2.
Although currently bitcoin is not highly correlated with gold, this crypto asset might still be set to become digital gold before the end of 2020. That may happen considering the previous price correlations and trends in the futures market. Based on Skew data, gold has a 27.22% year-to-date (YTD) return, while Bitcoin has gained a 42.36% YTD yield.