Cryptocurrency analyst Colin Tokes Crypto shared a noteworthy assessment of the current price movement of Bitcoin (BTC).
According to the analyst, while gold is closing the gap with the global money supply (Global M2), Bitcoin has not yet followed suit, although historical evidence suggests that BTC is usually trailing behind gold.
Colin issued the following statement:
“There will soon be a period when gold and global M2 overlap, which suggests that Bitcoin could make a strong catch-up.”
According to analysts, there are four main reasons supporting this view:
- Gold has closed the gap with Global M2.
- Bitcoin typically lags gold’s rise.
- The BTC/Gold chart looks poised for an upward breakout.
- We are approaching a one-month “overlap period” where gold and global M2 rise simultaneously, increasing the likelihood that Bitcoin will experience similar momentum.
Colin Talks Crypto has claimed that Bitcoin could outperform gold in the coming weeks, with a potential rally starting as early as the first week of November.
“I think Bitcoin could start its steepest rally around November 8th. This move could last a month or two. Of course, timing is always the most difficult part, so it’s worth leaving some wiggle room.”
The analyst also reminded that he does not expect Bitcoin to perfectly match global M2, as this correlation has always broken down during peaks in past cycles.
*This is not investment advice.