Hedge Funds Abandon Gold To Chase Bitcoin

Since the beginning of December, gold and bitcoin have drastically diverged.

For the first 11 months of this year, gold and bitcoin were largely positively correlated (albeit low at 0.25). That changed at the start of December…

As it seems gold’s relative tranquility was shunned in favor of Bitcoin’s chaos…

And hedge fund managers dumping their gold positions and, as the chart below shows, piling into digital gold…

Who knows how long this regime shift will last, but we do note that Gold/Bitcoin is at a critical level of overbought-ness once again…