Since April Money Is Flowing Into Gold And Out Of Bitcoin (Here Is Why)

Gold is going up. You know that because we have been following it closely together. The price of gold made a double bottom in March and began to rally. At the same time, Bitcoin has been falling apart as it fell into a technical slaughter box when it fell through $50,000.

Yesterday, it fell again through $43,000 as the recent short-term bounce in the Nasdaq lost momentum, and this morning is tapping on the $40,000 level.

A lot of people are now trapped. The problem with a Robinhood trader is that their app gives them zero information expect price action and lists of stocks and crypto collectible currencies that others on Robinhood own. So, with no useful information to make decisions, they are encouraged to simply become a herd trader.

It’s useful, though, to look at this chart. At the top is gold and below it is the Nasdaq, Bitcoin, the TLT Treasury bond ETF, and the US dollar index at the bottom.

Gold is the only thing on this chart that has been going up in the past eight weeks.

Why?

Two things have happened.

First, we have seen a manic peak in speculative energy in the markets in early April. This is represented by the recent tops in Bitcoin and the Nasdaq 100, which has caused fad popular big-cap stocks, such as those on the Robinhood top 100 owned list and inside the ARKK ETF to dump hard. As money goes out of things it looks for new places to go.

Gold, silver, and commodities have been one place. This doesn’t mean the stock market is going to fall endlessly. It is simply the areas of most speculation that are getting hit. The DOW has barely fallen from its recent high in comparison to Bitcoin and the ARKK ETF and stocks like TSLA. My guess is that we are going to get one more leg down on this Nasdaq correction. I’m personally looking for a spike in the VIX indicator to signal a bottom and it could happen next week.

1 2
View single page >> |

Read my disclosure here, and my disclaimer here

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.