To investors,

Bitcoin is up over the last 5 days, while gold has been falling. This outperformance is a departure from the trend year-to-date where gold has been significantly outperforming bitcoin.

Gold is up more than 20% since January 1st and bitcoin is only up 3%. As I continue to say, both assets embody the sound money principles that investors are seeking during times of uncertainty.

But there is one key data point to understand to get an idea of what happens next — bitcoin usually lags moves in gold by about 100 days. Jack Green put together this great chart to show how the relationship worked in the last two years.

The trend holds if you go back for the last decade as well. David Foley shows that with this graphic.

This is important because gold has been appreciating aggressively while bitcoin lagged behind. This is actually normal and not something to be concerned about. Instead, you should think of bitcoin as a coiled spring.

The harder that gold runs without bitcoin, the more violent the move in bitcoin should be 3-4 months later. A big reason for this is that bitcoin is much more sensitive to global liquidity than gold. The digital version of sound money is always going to be the better performer because of the smaller market cap and larger addressable investor base that has yet to allocate to the asset.

So gold has had a great run, but I believe it is bitcoin’s turn to join the party. The world is adopting a new monetary asset at a time the global monetary order is being restructured. You couldn’t draw up a better script for the rise of bitcoin.

Hope you all have a great day. I’ll talk to everyone on Monday.

– Anthony Pompliano

Founder & CEO, Professional Capital Management

The CIA Deputy Director Talks China, Technology, Bitcoin, and Cartels

Michael Ellis is the Deputy Director of the CIA.

In this conversation we talk about the relationship between US and China, Taiwan, how they evaluate technology and AI, bitcoin, cartels, and what Micheal pays attention to on a daily basis.

Enjoy!

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