The Factor LLC chief executive said a potential reallocation reflects his view that gold may outperform Bitcoin, citing a chart pattern that suggests the metal’s relative decline against the cryptocurrency may have reversed.
Peter L. Brandt, a financial trader and chief executive of Factor LLC, said he is considering selling part of his Bitcoin holdings and using the proceeds to buy gold as he sees scope for the XAU/BTC ratio to rise sharply. Brandt said the chart shows a rounded bottom, a pattern he views as signaling that gold’s decade-long relative downtrend versus Bitcoin may have reversed. The comments come after bitcoin fell 20% in June to below $60,000, compared with an 11.7% drop in gold, and as bitcoin is down 28% year to date versus gold’s 3.9% decline.