Bitcoin's Macro Hedge Appeal Rekindles $90K Hopes
The price of Bitcoin is consolidating below $90k, but some analysts believe that it could break out and reach new highs. One signal that they point to is the BTC/Gold ratio, which has been pushing higher and may soon break above a significant level.
According to AMBCrypto, the liquidity from this rotation could be the catalyst that propels Bitcoin towards $90k. Jurrien Timmer, Director of Global Macro at Fidelity, shares this view: 'I continue to like exposure to both gold and Bitcoin, but especially Bitcoin looks interesting to me at these levels.'
The BTC/XAU ratio has already broken out above a critical level, reaffirming Bitcoin's status as a macro-hedge. The asset's correlation with Treasury yields is lower than that of gold, making it a useful diversifier in a volatile market.
With the macro environment remaining volatile and investors still hedging into safe havens, a rotation from gold to BTC could provide the liquidity required for a breakout.