Analyst claims gold money is responsible for Bitcoin’s price rebound

Gold made history last week to hit an all-time high of $4,200 for the first time in its long history of existence, causing much euphoria among investors. This success seems to be impacting crypto as well.

According to a crypto analyst on 20 October, Bitcoin’s recovery from last week’s correction was as a result of the money flowing from gold into the coin.

With this playing out, higher prices are expected for Bitcoin in the coming days and weeks as gold gradually slows down.

A usual pattern

Bitcoin proponents have often referred to the coin as digital gold and mostly argue that it is superior.

The two assets however have a long-standing relationship that some may find hard to admit — their prices have a certain connection that remains till this day.

In the past, a rally in the price of gold has generally been followed by a Bitcoin rally, and that seems to be what is happening currently.

Based on this, analysts have severally predicted that the price of gold — which broke $4,000 for the first time this year — would eventually have a positive effect on Bitcoin.

Also inferring from the pattern in 2020, they maintain Bitcoin will see a major rally after gold peaks and enters consolidation mode.

The Bitcoin rally comes from investors making money from gold and investing it in the “digital gold”, causing its price to soar.

When will gold give way

For many Bitcoin investors, the question of when Bitcoin will take over the rally from gold is more important than the fact that such a rally is coming.

So, when will gold give way? Analysts already see the asset approaching its top and a possible correction on the way.

Only when this happens can Bitcoin take over and begin the expected rally which is also likely to influence altcoins.