U.Today - Bloomberg’s senior ETF analyst Eric Balchunas has drawn the community’s attention to the fact that recently the stock market has been plummeting, while the world’s pioneer cryptocurrency, Bitcoin , has been on a rise, heading to test the $90,000 price level.

Bitcoin breaks correlation to stocks

He pointed out that Bitcoin has broken its historical correlation to the stock market recently and has thus far been moving in quite the opposite direction from it. The screenshot he shared shows that the S&P 500 (SPY) was down 1,000 points this Monday, while on that day BTC jumped by 3.57% and hit $88,250.

Balchunas also mentioned gold, which is “in the leage of own.” On Monday, it showed a small decline of 0.983, displaying a strong negative correlation to the stock market.

However, today, this precious metal soared to a new all-time high at $3,500 per troy ounce after U.S. President Donald Trump has confirmed his intention to fire the chairman of the Federal Reserve Jerome Powell.

Gold is overbought, stocks are oversold, but Peter Brandt has doubts

Legendary commodity trader Peter Brandt, with roughly 60 years of trading experience, has shared his take on the narrative beginning to circulate on the market about gold being overbought and stocks being oversold. This implies that soon the situation is likely to change.

Brandt shared a chart, showing that gold has been heavily declining against the S&P 500 since its previous all-time high in 2012. This year, the gold price has been rising steeply with XAU, reaching 23% YTD growth by now.

Peter Brandt stated that gold might be oversold versus stocks in the near term, but as for the long-term prospects, “We’ve only just begun the flippening.”

This article was originally published on U.Today