Two traders are unfazed by bitcoin's meteoric surge and say that between the cryptocurrency and gold, you're better off trading the yellow metal.
Bitcoin has jumped 240 percent this year to a high of $3,288 on Wednesday, while gold was trading at $1,280. But despite the bitcoin gains, Brian Stutland of Equity Armor Investments and Path Trading Partners' Bob Iaccino believe gold is still a better bet than bitcoin from technical and fundamental perspectives.
"When you look at gold over the past couple of months, [it has] tracked very well [relative] to the cryptocurrency," Stutland said Tuesday on CNBC's "Futures Now." "If you price adjust and volatility adjust, I think gold still has a little bit of catching up to do."
As for Iaccino, he believes that while bitcoin's popularity is indisputable, a takeover by another digital currency could be possible, leading him to believe that bitcoin is more unstable than many may think.
"Bitcoin, right now, is the most popular [cryptocurrency] and it is the most valuable one," he said. "But I don't see it as a store of value, because any [other cryptocurrency platform] could come out with a slightly better technology and completely replace bitcoin."
In order to catch up to all the action bitcoin is seeing, Stutland wants to buy gold at the $1,265 level, targeting a move up to $1,285 by December expiration with a stop at $1,250, a key support level that gold has held, according to the trader.
"The volatility is tremendous, so you're going to see wild swings in here and that is something to be aware of," he said.
Gold actually rose more than 1 percent on Wednesday off threats delivered by President Donald Trump and North Korea's Kim Jong Un to one another, the yellow metal being one of the biggest safety trades in times of possible turmoil. Bitcoin, on the other hand, dropped more than 3 percent Wednesday, reversing some of the cryptocurrency's gains from the week
Bitcoin Price Corrects to $5,880, Down $270 After New All-Time High
Earlier today, on October 22, the bitcoin price declined from $6,150 to $5,880, recording a minor correction after achieving a new all-time high at $6,199.
Bitcoin Price Increases From $4,800 to $6
Your Reputation Hides within Your Mobile Phone
A mobile phone is your friend, business assistant, a way to connect your dear ones, and even a boss sometimes if you set the alarm on. However, what if your phone can be a reputation tool able to
Dilbert Comic Strips Lampoon Blockchain and Initial Coin Offerings
With the enterprise business world moving closer to launching blockchain-based products and services, it's no surprise that the popular comic Dilbert would tackle the subject.
In the past week, com
Bitcoin Price Weekly Analysis – BTC/USD Buyers In Control
Bitcoin price remains in a major uptrend above $5600 against the US Dollar. BTC/USD might even trade past $6200 in the near term. This past week was mainly bullish for Bitcoin price as it moved
COMMERCEBLOCK Digitalizing and DeRisking Global Trade
The global trade gap is narrowing but with little help from fintech, according to the Asian Development Bankâs (ADB) annual survey. Surprisingly, only 20 percent of firms report using digital trade
Ethereum Price Weekly Analysis – ETH/USD Not out of Woods
Ethereum price is neutral against the US Dollar, but under a lot of pressure against Bitcoin. ETH/USD needs to hold $280 to avoid more declines. This past week, there was an upside move in ETH
WAX: Using Blockchain To Empower Decentralized Exchanges Of Virtual Goods
The worldwide video gaming market has grown to the extent that computer gaming is being touted as a potential future Olympic sport. In this context, an entire sub-industry has grown around trading
Bitcoin Cash Price Weekly Analysis – BCH/USD Upsides Capped
Bitcoin cash price is maintaining a neutral bias above $300 against the US Dollar. BCH/USD has to break the $350-370 resistance to trade past $400. There were mainly ranging moves in Bitcoin cash