Bitcoin's BTC/XAU Ratio Breakout Sets Stage for $90k Move
The Bitcoin price has been consolidating below $90k, and market observers are looking for a catalyst to push it higher.
According to analysts at the Kobeissi Letter, the recent September jobs report and PCE inflation data were weaker than expected, which may indicate a repressed risk appetite.
However, the BTC/XAU ratio, which measures the price of Bitcoin against gold, is pushing higher and looks ready to break above a significant level.
This could be the catalyst that propels Bitcoin towards $90k, as liquidity from the rotation from gold to BTC could provide the necessary momentum for a breakout.
Jurrien Timmer, Director of Global Macro at Fidelity, shares this view, highlighting the importance of Bitcoin as a macro-hedge and its potential to reach $100k.
Bitcoin's correlation with Treasury yields is lower than that of gold, making it a useful diversifier in a volatile market.