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While a few years ago the gold market was teeming with investors, the apparition of the cryptocurrency known as Bitcoin has shifted their attention to a new financial environment.

Gold mining ETF (GDX) has decreased with 15% from its high numbers from September while the value of gold has plummeted to unprecedented lows since the end of July. Head of U.S. macro strategy at ACG Analytics, Larry McDonald, says that this decline in the gold market has also been succeeded by a decline in bond yields, which in his opinion is of very rare occurrence.

He also said on CNBC’s “Trading Nation” segment that “Over the last two years, every time rates have come down, and this week rates have moved lower, you had gold go up,” continuing with „Almost every time, there has been an 82 percent correlation between gold and bonds. This week, for the first time, that correlation broke down, and I do think it has something to do with bitcoin.”

According to CoinBase, as gold has lost more than 2% of its value in the past month, bitcoin has more than doubled its price in the same time span.

As a result of bitcoin’s launch in futures contracts on the CBOE, bitcoin’s value has shot up to $16,800 USD on Monday morning. Gold, however, has not budged from its numbers from July.

Senior market strategist at RJO Futures, Phillip Streible says that the outcome of bitcoin futures contracts (the first one began trading on the CBOE on Sunday) will determine gold’s next action.

He goes on saying that “If all of a sudden we see bitcoin futures go into a free fall and collapse, [gold will benefit],” and that “Safe haven, store of value, it will start to get people back.”

The upcoming launch of bitcoin futures contracts will be the CME on the 18th of December.

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