Chart Comparison Demonstrates Effectiveness Of Bitcoin Digital Gold Narrative

Tony "The Bull" Severino

1 year ago

3 mins read

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2020 was the year of the digital gold narrative amid a pandemic and unprecedented money printing. In 2021, only Bitcoin matters and comparing it to gold at this point is selling the coin short.

Now is the age of cryptocurrency, and no comparison shows that better than the two charts you are about to see side-by-side.

The Bitcoin Standard Emerges As Gold Melts Down

Bitcoin was designed by Satoshi Nakamoto as the first form of peer-to-peer digital “cash,” but also sought to give the cryptocurrency several traits of of a commodity such as rarity. This was achieved through the asset’s 21 million BTC hard cap.

The cryptocurrency creator’s early comments showed a distinct fascination with gold, and appears to have been attempting to create a digital representation of the hard money standard.

The term gold standard is used to describe a time when all fiat currencies were pegged to the shiny precious metal, and it was a time that was much more prosperous and wealth gaps weren’t nearly as wide.

The evolution of the dollar and all fiat money into what it is today, did away with the gold standard decades ago. As a result, the price per ounce of gold skyrocketed form around $30 to $2,000 this past year.

At the gold bull market peak, however, a passing of the torch took place. The moment gold topped in August, coincides with the moment hedge funds and public companies began buying BTC.

Gold's value has been diminishing while Bitcoin's rises. Coincidence? | Source: BTCUSD on TradingView.com

From that moment forward, Bitcoin has been in its most powerful uptrend yet and spiked from $10,000 to $50,000 with not even a trillion in capital to show for it. Gold outflows began to rise the same time Bitcoin trading volume and futures open interest started to climb to previous highs.

If the $10 trillion the gold market cap commands makes its way into Bitcoin, the price per coin could reach more than $500,000 a piece.

The chart above shows exactly when the deviation took place, and gold’s downtrend began. Prior to that, both assets initially performed well as a safe haven post-pandemic, however, the digital currency has completely taken over since.

The digital gold narrative has been effective, and now Bitcoin is ready to set it sights on replacing the dying dollar instead.

Bitcoin was once following a gold fractal closely for years, which has thus far benefited the young cryptocurrency well. But now that the torch has been passed, will Bitcoin soon be the asset to catch up to?

Featured image from Deposit Photos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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