Bitcoin (BTC) hit seven ounces of gold for the first time in 2020 this week as the valuable metal comes off all-time highs.
According to CoinGecko, BTC/XAU returning to the pivotal 7 ounce mark on Oct. 25, continuing to edge up to press-time levels of 7.02 ounces.
Gold hits one-year lows in Bitcoin
Despite Bitcoin losing ground after challenging $14,000 level, the gains against the precious metal remained on Thursday, as the traditional safe haven felt the pressure of covid-19 tensions and U.S. election uncertainty.
The last time BTC/XAU broke 7 ounces was in September 2019.
Quant analyst PlanB, creator of the stock-to-flow family of Bitcoin price models, called that move “significant.”
“It looks like #Bitcoin is getting ready to conquer a larger portion of the gold market cap,” data monitor Ecoinometrics tweeted.
“Right now #BTC is at about 2.4% of the market size of gold. This is only the beginning.”
The sentiment echoed recent comments by Real Vision CEO Raoul Pal, who said that gold was “breaking down” against BTC and that other macro assets would follow that.
“The next thing I’m expecting is the correlations between BTC and the dollar and BTC vs equities to break down too… let’s see,” he said last week.
Schiff: Bitcoin is “the biggest bubble I’ve seen”
Reacting to the latest price action, embattled gold bug Peter Schiff did not give up. Despite BTC/USD is still far from its $20,000 all-time highs, in a fresh Twitter post, Schiff described the cryptocurrency leader as a “bubble.”
“If you measure the size of asset bubbles based on the level of conviction buyers have in their trade, the #Bitcoin bubble is the biggest I’ve seen,” he said.
“Bitcoin hodlers are more confident they’re right and sure they can’t lose than were dotcom or house buyers during those bubbles.”
BTC has yet to suffer as a result of renewed uncertainty across the global economy, resulting in increased claims that its correlation with traditional assets has all but disappeared.
Correlation between Bitcoin market and the S&P 500 market hit zero again this week, as Bitcoin struck out on its own in its latest gains.
“It could not be more uncorrelated than it is right now,” said Anthony Pompliano, co-founder of Morgan Creek Digital.