Morning Stock News

Gold  1804,225
(-0,37%)

EURUSD   1,1903
(+0,25%)

DJIA  30000,50
(+0,51%)

OIL.WTI  45,12
(+3,80%)

DAX   13324,61
(+0,59%)

Approximately 3 weeks ago we drew the attention of our subscribers to a correlation violation. The price of Bitcoin was disconnected from the S&P 500 index and gold. However, the situation has changed even more during this time.

Bitcoin

Bitcoin

Now there is not just a split of gold and Bitcoin, but their opposite correlation. That is, the growth of one asset (bitcoin) is accompanied by the fall of another (gold). We have been observing this trend throughout November. Tuesday was the apogee of this process.
At the moment the price of the first cryptocurrency rises by 1000$, from 18300$ to 19300$. Against the same backdrop, gold falls by 40$, breaking through the level of 1800$ per troy ounce. By the way, a couple of days ago we also drew our subscribers’ attention to the risk of breaking through strong horizontal support for gold.


What does it mean?

No final conclusions can be drawn on events of just one month. But we will risk making a terrible assumption for which the “golden bulls” will want to lynch us. Gold and Bitcoin switched places at the end of 2020 as an asset protecting money against inflation. And this may be one of the strongest changes in the 21st century.
Yes, we understand that it sounds pathos. But events are very similar to what happened about 100 years ago, and it was the same titanic change in the early 20th century.
What assets are we talking about? Coal and oil. If, at the beginning of the 20th century, someone had expressed the stinking idea that no one was going to need coal soon, it would have been laughed at. Absolutely everything worked on coal. At that point in time, almost no one needed oil. At one point, however, everything suddenly changed. For example, today, who needs coal and why do they need it? It is used as a fuel for cogeneration plants and for steel production. Oil took the rest of the market share.
The same thing may have happened with gold and bitcoin. If this is the case, we will see a huge flow of assets in the coming years. After all, the capitalisation of gold today is about $7 trillion, and the BTC 350 million or 20 times less.


What awaits us today?

14.30 Initial claim for unemployment benefit in the USA
14.30 GDP data for Q3 in the USA
14.30 Durable Goods Orders for October in the USA
20.00 Minutes of the US Federal Reserve Meeting


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