“The rising tide lifts all boats.”
~ John F. Kennedy
Written by Bryan Lutz, Editor at Dollarcollapse.com:
In Vancouver, Canada, the Mighty Fraser river meets the Pacific ocean by branching apart into a delta.
If you’ve ever walked near a river as it meets the ocean you would see what happens when the tide is out.
The river shrinks down in scale…
And it appears as though it has sandy banks for dozens of meters.
If you are not aware of the ocean about 10 to 12 miles away, you’d think the river was running dry.
But as it turns out, it is simply the tide.
Curious things happen in nature, but then it turns out they can be explained after all.
Take a look at the flow of gold, and Bitcoin in the picture below.
Then let me know what you make of it.
During the past two weeks, a Bitcoin Maximalist (like a goldbug, but for Bitcoin) would have used ETF outflows as proof that Bitcoin is a better asset than gold.
Especially when you look at this chart, which demonstrates inflows for Bitcoin, and outflows for gold.
Major gold producer’s took the hit.
Big Daddy Newmont went down a shocking 7%.
And Bob Moriarty at 321gold.com provided his commentary:
“Newmont shares got sold because they could…
…When Nvidia crashes and Bitcon returns to earth, the direction of money flow will reverse. Bitcon is up 30% in just six weeks. There is nothing in economics that justifies that any more than Newmont dropping 7% in a day.”
You could see Bitcoin as a bubble, but Bitcoin’s done this several times before over the last ten years, yet the price keeps rising.
Even more peculiar is that while money is moving from the major gold stocks, the price of gold is finally breaking out past the triple top, 12 year cup and handle.
What’s going on?
Institutional investors are looking at their portfolios and allocating a small portion to Bitcoin…
And Bob Moriarty was right, Bitcoin outflows sold because they could. Institutional investors were wondered if gold will ever move at all, so they figure, “Why not move a small portion into Bitcoin? It’s moving.”
At the same time, traders are anticipating Federal Fund Rate cuts.
When rates lower, gold prices move up.
So here we see two assets (I will call them assets as far as people are putting money into them – Gold and Bitcoin) battling for market capitalization…
All while the tide of the USD moves out.
What will be revealed when the tide is out?
Bitcoin?
Gold?
Perhaps, gold when all is said and done.
What are your thoughts?
