Interesting watching the price of gold. It rises after every Democratic debate (perception that the nation is in financial jeopardy so stable investment is needed), and drops after every Republican debate (perception that there is hope, no need to sock it away in gold).
Gold prices rise when conservative consumers lose confidence in the government.
Bitcoin, on the other hand, runs OPPOSITE of gold. Every time gold rises, Bitcoin drops. Every time gold drops, Bitcoin rises. It is favored more by liberal investors than is gold – gold is strongly favored by conservative investors. And Bitcoin investors invest when consumer confidence is high – there is a correlation with politics, but less dramatic than the political tie with gold, though Bitcoin is still a pretty strong indicator of liberal investor’s confidence in the administration. When people feel they have money to risk, they put it in Bitcoin. When they feel it has to be safe come what may, they put it into gold.
If you are considering investing in something though, those patterns should tell you what will happen if the bottom does fall out. Bitcoin will crash, clear to the bottom, while gold is still stable or rising.
I’ve just found those patterns to be fascinating. And they hold solid year after year.