Cryptocurrency analyst Colin Talks Crypto has shared a noteworthy assessment of Bitcoin’s (BTC) current price movements.
According to the analyst, while gold is closing the gap with the global money supply (Global M2), Bitcoin has not yet followed suit, but looking at past examples, it appears that BTC usually follows gold with a lag.
Colin made the following statement:
“There will soon be a period where gold and Global M2 overlap, suggesting that Bitcoin could make a strong catch-up move.”
According to the analyst, there are four main reasons supporting this view:
- Gold narrowed the gap with Global M2.
- Bitcoin typically lags behind gold's gains.
- The BTC/Gold chart looks set for an upside breakout.
- A one-month “overlap period” is approaching, where gold and Global M2 rise simultaneously, increasing the likelihood of Bitcoin experiencing similar momentum.
Colin Talks Crypto argued that Bitcoin could outperform gold in the coming weeks, claiming that the possible rise could begin as early as the first week of November:
“I think Bitcoin could start its steepest rally around November 8th. This move could last 1-2 months. Of course, timing is always the hardest part, so it's worth leaving some room.”
The analyst also reminded that he does not expect Bitcoin to completely align with Global M2, as in past cycles this correlation has always been broken during peak periods.
*This is not investment advice.
