Gold and #bitcoin are currently showing divergent behavior, even as both serve as hedges against currency debasement.
When adjusted for the U.S. money supply, gold is currently testing a historic resistance level. This specific ratio has only been reached a few times in the last 50 years—most notably in 2011 and during the significant inflationary period of the late 1970s.
In contrast, Bitcoin is testing a key support zone. This area aligns with the lows seen during the macro-driven volatility in April and the previous cycle high set earlier this year.
This divergence doesn't necessarily mean the two assets are decoupled. Gold’s current strength highlights immediate concerns regarding the stability of fiat currencies, while Bitcoin's pullback represents a period of consolidation within its broader market cycle.
Ultimately, both assets are responding to the same underlying economic pressures, simply at different stages of their respective cycles.
#CryptoEducation #MarketAnalysis
