Grayscale: Correlation between $BTC and $XAU breaks through 50%—opportunity or risk?
Bro, Grayscale released data worth paying attention to: the correlation between Bitcoin and the Nasdaq dropped from 60% to 33%, while the correlation with gold rose from 0 to over 50%. In plain terms: Bitcoin is decoupling from the US stock market and syncing with gold.
Grayscale believes this is a signal of a “currency devaluation trade” making a comeback. After US Treasury bonds broke through $40 trillion, the market started looking again for assets that can hedge fiat currency devaluation.
Looking at the K-line:
XAU has slid all the way from 4700 to 4611, breaking below the Bollinger midline at 4620. RSI is between 54–61, and the MACD is near the zero line with a bearish cross. In the short term it’s weak; 4550 below is strong support.
Gongming’s view: The mid-term logic for gold is still there, but Bitcoin is diverting its “store of value” demand. Grayscale puts it bluntly—Bitcoin is a scarce alternative to gold. At the 4611 level, both bulls and bears are waiting for direction.
Trading strategy:
Long: On a pullback to 4580–4590, enter long after it stabilizes. Aggressive entries can go long around the current price of ~4610.
Short: If it breaks below 4580, chase a short.
Remember—Bitcoin and gold are no longer two separate lines. When the correlation between them breaks above 50%, gold’s counterparty is no longer just the US dollar. Follow Zhao Gongming—I'll help you understand this hidden battle in monetary assets.#央行Q2购金289吨创纪录 #黄金8月上涨约14%
Bro, Grayscale released data worth paying attention to: the correlation between Bitcoin and the Nasdaq dropped from 60% to 33%, while the correlation with gold rose from 0 to over 50%. In plain terms: Bitcoin is decoupling from the US stock market and syncing with gold.
Grayscale believes this is a signal of a “currency devaluation trade” making a comeback. After US Treasury bonds broke through $40 trillion, the market started looking again for assets that can hedge fiat currency devaluation.
Looking at the K-line:
XAU has slid all the way from 4700 to 4611, breaking below the Bollinger midline at 4620. RSI is between 54–61, and the MACD is near the zero line with a bearish cross. In the short term it’s weak; 4550 below is strong support.
Gongming’s view: The mid-term logic for gold is still there, but Bitcoin is diverting its “store of value” demand. Grayscale puts it bluntly—Bitcoin is a scarce alternative to gold. At the 4611 level, both bulls and bears are waiting for direction.
Trading strategy:
Long: On a pullback to 4580–4590, enter long after it stabilizes. Aggressive entries can go long around the current price of ~4610.
Short: If it breaks below 4580, chase a short.
Remember—Bitcoin and gold are no longer two separate lines. When the correlation between them breaks above 50%, gold’s counterparty is no longer just the US dollar. Follow Zhao Gongming—I'll help you understand this hidden battle in monetary assets.#央行Q2购金289吨创纪录 #黄金8月上涨约14%
