Opinion: Bitcoin and gold should hold up amid a renewed stock-market downturn

Dan Tapiero, co-founder of 10T Holdings and Gold Bullion International, noted a ‘troubling’ indicator for the stock market. But in his view, a possible short-term decline in stocks will not affect gold and Bitcoin.

Unfortunately, most worrying data point have seen in a while for #StockMarket from short term perspective.

Certainly an extreme of epic proportions hit on this indicator. Does not seem to be something that can be corrected in just a few days.#Gold and #BTC should hold up. pic.twitter.com/H8YkalEEQT

— Dan Tapiero (@DTAPCAP) September 5, 2020

The indicator Tapiero pointed to was retail investors’ greatest optimism ever about the S&P 500 index.

He believes the situation will reverse at some point and negatively affect stock prices.

“Unfortunately, there have been very worrying stock-market data points from a short-term perspective for some time. Undoubtedly, the indicator has shown an extreme of epic proportions. It seems this is not something that can be fixed in just a few days,” he commented on the chart.

But if such a scenario unfolds, gold and Bitcoin should hold up, added Tapiero.

Earlier he stated that interest from American institutional investors in gold would positively affect the mainstream adoption of the first cryptocurrency.

From May to August, the correlation between the two assets nearly doubled and reached 0.837.

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