When Gold is going up, buy Bitcoin. $IBIT – February 13, 2025
This is Scott at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I’m going to be looking at two charts at the same time. We’ll look at Gold ( NYSEARCA: GLD ) and Bitcoin ( NASDAQ: IBIT ).
Gold ( NYSEARCA: GLD ) is really going here and Bitcoin ( NASDAQ: IBIT ) really isn’t. I actually think this is a good thing for Bitcoin ( NASDAQ: IBIT ). Because as I’m going to show you, historically when Gold ( NYSEARCA: GLD ) goes up Bitcoin ( NASDAQ: IBIT ) consolidates. And when Gold ( NYSEARCA: GLD ) consolidates Bitcoin ( NASDAQ: IBIT ) goes up.
Here’s the kicker, Bitcoin ( NASDAQ: IBIT ) historically outperforms. And so you want to look for and, in my opinion, get into Bitcoin ( NASDAQ: IBIT ) while it’s in consolidation, and while Gold ( NYSEARCA: GLD ) is going up. At this point, you could probably feel like you’re chasing Gold ( NYSEARCA: GLD ) here.
Gold ( NYSEARCA: GLD ) has been going up, since the end of December, pretty much in a straight line, we have had Gold ( NYSEARCA: GLD ) reaching new highs. And we’ve had Bitcoin ( NASDAQ: IBIT ), around the same time, just going sideways. As you see from this chart here, we have a bit of an inverse consolidation.
Bitcoin ( NASDAQ: IBIT ), historically will consolidate while Gold ( NYSEARCA: GLD ) is going up. Gold ( NYSEARCA: GLD ) will consolidate while Bitcoin ( NASDAQ: IBIT ) is going up. You can actually play both sides, you don’t have to be in the Gold ( NYSEARCA: GLD ) camp of, Gold ( NYSEARCA: GLD ) is the only way. You also don’t have to be a hardcore Bitcoin ( NASDAQ: IBIT ) maximalist saying that Bitcoin ( NASDAQ: IBIT ) is the only way, you can actually do both.
Here’s what I’m going to show you. In the past we, see just in 2023, as the market came off of the lows, everything came off the lows with it. We had Gold ( NYSEARCA: GLD ) come off the lows. We had Bitcoin ( NASDAQ: IBIT ) come off the lows. And then we had Bitcoin ( NASDAQ: IBIT ) start to go up and go up significantly as more chatter of the Bitcoin ETFs coming to market was getting louder and louder.
Then shortly after once the Bitcoin ETFs launched and everyone got their fill, we saw Bitcoin ( NASDAQ: IBIT ) go sideways for over 200 days. Throughout that, what happened, we actually saw Gold ( NYSEARCA: GLD ) continue to go up and make new highs. And so once again we have this inverse correlation, Bitcoin ( NASDAQ: IBIT ) goes up, and Gold ( NYSEARCA: GLD ) goes sideways.
Gold ( NYSEARCA: GLD ) goes up, and Bitcoin ( NASDAQ: IBIT ) goes sideways. Gold ( NYSEARCA: GLD ) goes sideways, Bitcoin ( NASDAQ: IBIT ) goes up and here we are in an environment where Gold ( NYSEARCA: GLD ) is going up and Bitcoin ( NASDAQ: IBIT ) is going sideways.
I definitely think that there’s an advantage to buying Bitcoin ( NASDAQ: IBIT ) over Gold ( NYSEARCA: GLD ) here, simply because Bitcoin ( NASDAQ: IBIT ) historically outperforms. Even in this same time frame, we see Gold ( NYSEARCA: GLD ) from, let’s be fair and measure it evenly.
If we measure the performance of GLD ( NYSEARCA: GLD ) here on this chart from October 2023 to now, we see Gold ( NYSEARCA: GLD ) up about 60 percent. That’s not a bad move, but at that same time, from October 2023 we see Bitcoin ( NASDAQ: IBIT ) over 200 percent even now.
So even though Bitcoin ( NASDAQ: IBIT ) is off the highs, Gold ( NYSEARCA: GLD ) has still underperformed BTC ( BTC / USD ). And so if you’re looking at Gold ( NYSEARCA: GLD ) right now and have a bit of that FOMO. Here’s what I’m going to say, don’t look at Gold ( NYSEARCA: GLD ) right now, you should be eyeing up something like IBIT ( NASDAQ: IBIT ) because IBIT ( NASDAQ: IBIT ) is in consolidation.
I’ve told my friends over at Crypto Market Mentor that it’s in a box. It’s just in a sideways box of consolidation. And you can see zoomed out here, I have Gold ( NYSEARCA: GLD ) as this maroon line. Gold ( NYSEARCA: GLD ) is up 43 percent, but IBIT ( NASDAQ: IBIT ) is up 95 percent. So even if you don’t have a crypto account you’re still able to capture some of that potential outperformance with the Bitcoin ETFs.
I would definitely keep an eye on IBIT ( NASDAQ: IBIT ) here. Maybe you want a little while it’s in consolidation, then when it starts to move you layer a little more into that trade as it rewards you. And I would definitely look for a breakout here on IBIT ( NASDAQ: IBIT ) right around that $61.00 level. That 61.00 level has been resistance over and over again.
I think you want to be small within IBIT ( NASDAQ: IBIT ) while it’s in consolidation and while Gold ( NYSEARCA: GLD ) is still going up. And then when Gold ( NYSEARCA: GLD ) starts to consolidate keep an eye on it. When this starts to pull back and it could be up here, it could be over here, we don’t know where this is going to pull back. When it does start its consolidation then I think IBIT ( NASDAQ: IBIT ) is a great alternative for that store of value trade that historically outperforms.
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