Bitcoin Breakout: $90k Target in Sight as $BTC/XAU Ratio Surges
The $90k Bitcoin price target is still on the table, and a key catalyst may be lurking in the shadows. The $BTC/XAU ratio is on the rise, with a potential breakout that could bring much-needed liquidity to the market. As Jurrien Timmer, Director of Global Macro at Fidelity, notes, 'I continue to like exposure to both gold and Bitcoin, but especially Bitcoin looks interesting to me at these levels, where we broke out above $80k, targeting $100k.'
The recent jobs report and PCE inflation data have been weaker than expected, causing the 10Y Note Yield to falter. However, the bond market's hesitation has not deterred the $BTC/XAU ratio, which has increased by 37%+ since mid-August. This shift in preference from gold to Bitcoin is a significant development, especially given the asset's low correlation with Treasury yields.
With the macro environment remaining volatile, a rotation from gold to Bitcoin could provide the liquidity needed for a breakout. As the Kobeissi Letter notes, 'The bond market is not messing around,' and the current market conditions are ripe for a $BTC/XAU ratio breakout. If this trend persists, it could enable another $90k leap for Bitcoin.