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As traditional stock markets continue to face losses, Bitcoin (BTC) has surged past the $88,000 mark, while gold has achieved another historic all-time high. At the time of writing, BTC is trading at $88,193, reflecting a 5% increase over the past week. This upward momentum has led some analysts to suggest a potential decoupling from traditional financial markets.
According to data from Coinglass, a leading crypto data aggregator, over $232 million in positions were liquidated in the last 24 hours, with the majority being traders who had shorted BTC.
While gold is currently trading at an all-time high of $3,415, BTC remains approximately 20% below its previous peak. However, in a recent interview on CNBC, Tom Lee, Chief Investment Officer at Fundstrat, predicted that Bitcoin is poised to catch up with gold.
“I think Bitcoin earlier this year may have been struggling with some of the deleveraging that was happening for institutional investors… Selling what they could, and I think that suppressed Bitcoin, especially over weekends. But now that the deleveraging is done, I think that Bitcoin is going to catch up to gold. Bitcoin’s old high was over $110,000, so I think there’s a lot of room to catch up as a non-dollar asset,” Lee stated.
Similarly, Anthony Pompliano, founder of Pomp Investments and a long-time Bitcoin advocate, noted that historically, gold often leads Bitcoin in rallies for several months before the cryptocurrency eventually surges ahead with greater volatility.
“Nobody really knows why that happens. My guess would be that a lot of the central banks and institutional investors are either not approved to buy Bitcoin or they’re not used to running to Bitcoin in these moments of geopolitical uncertainty. What we do see, though, is when gold runs, about 100 days later or so, Bitcoin not only catches up, it usually runs much harder, so you get that higher volatility,” Pompliano explained.
For further insights, watch the CNBC interview with Tom Lee here, and Anthony Pompliano’s comments here.
Sources: Coinglass, CNBC, YouTube
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