Bitcoin (BTC) hit seven ounces of gold for the first time in over a year this week as the precious metal hits all-time highs.
Data from CoinGecko showed BTC / XAU returned to the pivotal 7-ounce mark on October 25, continuing to hit levels of 7.02 ounces at press time.
Gold hits lowest level in a year in BTC
Although Bitcoin lost ground after challenging $ 14,000, gains against gold stuck on Thursday, as the traditional safe haven felt the pressure of coronavirus-related tensions and U.S. election uncertainty.
The last time BTC / XAU broke 7 ounces was in September 2019.
Commenting on the latest events, quant analyst Plan B, creator of Bitcoin’s stock-to-flow stock price model family, called the move “significant.”
“Looks like #Bitcoin is gearing up to take more of the gold market cap,” data analysis Ecoinometry responded on Twitter.
“Right now, #BTC is about 2.4% of the size of the gold market. This is just the beginning. “
1 Year BTC / XAU Chart. Source: CoinGecko
Sentiment echoes recent comments from Real Vision CEO Raoul Pal, who said gold was “collapsing” against Bitcoin and other macro assets would follow.
“The next thing I’m expecting is the correlations between BTC and the dollar and BTC versus stocks to break down too… let’s see,” he wrote last week.
Schiff: Bitcoin is “the biggest bubble I’ve seen”
Reacting to the latest price action, the besieged gold bug Peter Schiff did not hold back. Although BTC / USD remains far from its all-time high of $ 20,000, in a new Twitter message, Schiff described the largest cryptocurrency as a “bubble”.
“If you measure the size of asset bubbles by the buyer’s level of conviction in their trade, the #Bitcoin bubble is the largest I’ve seen,” he said.
“Bitcoin hodlers are more confident of being right and sure that they cannot lose than dotcom or home buyers during these bubbles.”
Bitcoin has yet to suffer due to renewed uncertainty in the global economy, which has led to growing claims that its correlation with traditional assets has all but disappeared.
As TBEN reported, the correlation between BTC / USD and the S&P 500 hit zero again this week, as Bitcoin struck alone in its latest gains.
“It couldn’t be more uncorrelated than it currently is,” summed up Anthony Pompliano, co-founder of Morgan Creek Digital.