Since June 2019, Bitcoin has taken a leading position in terms of growth compared to gold

Since June 2019, Bitcoin has taken a leading position in terms of growth compared to gold

A specialist in the analytical department of CoinDesk named Omkar Godbol noticed an interesting feature. He noted that for the first time, Bitcoin was able to outperform gold in terms of growth.

In October 2019, the “first digital asset” increased by 10.26 percent, while gold grew by only 2.74. Moreover, Bitcoin’s value had been falling for the previous 3 months, while gold’s most significant decline was noted in September 2019.

The charts show that from February to June 2019, all monthly candles are colored green. You can see the longest series of growth since August 2017. At the same time, gold was falling from February to April, and began to pick up the pace in May by 1.7 percent and in June by 7.9 percent. Bitcoin managed to increase by 62 percent and 25.89 percent in the same period, respectively.

Omkar Godbold claims that the first cryptocurrency has every chance to overtake gold in November this year. This may happen amid optimism about business negotiations between the United States and China. This could have a negative impact on the price of the precious metal. For many years now, November has been considered the most successful month for bitcoin. According to statistics, it increased in 6 out of 8 cases.

The positive factor in this situation is that the miner’s reward for one block is to be split in half, which is expected in May next year. Previously, Bitcoin showed its strength 6 months before this event. In November 2012, the reward was decreasing from 50 bitcoins to 25, while the exchange rate increased from $5 to $16 by the end of the summer. A similar situation could be observed again in June 2016. Back then, the first cryptocurrency rose from $360 to $780, and the reward was split in half in August.

Based on the above, we can assume that Bitcoin is likely to increase in price in November this year. Experts also estimate that it will be able to overcome local highs of $10,350, and then $13,880.

Coinmarketcap reports that Bitcoin is currently trading at $9,500 thousand. Such active growth in October of this year is due to increased trading volumes that have reached their maximum levels. At the same time, since February last year. After that, a pullback was recorded due to the fact that these volumes decreased. This once again proves its weakness.

Omkar Godbold also noted that the first digital currency failed to maintain its position above the 5-month moving average (right chart) over the weekend. And this was a prerequisite for realizing growth in the future.