In a previous post I put up the following chart depicting the recent major divergence between Bitcoin and GDX (gold miner index) and that if recent history is a guide for the future, we should see Bitcoin and GDX converge.

Bitcoin vs GDX

Bitcoin vs GDX

So what has happened since then?…

  • Bitcoin is down 20% from the recent peak as of now (probably due to rumblings out of China about curving chinese “Bitcoin speculation”).
bitcoin

Bitcoin. Source: Bitstamp.net

  • GDX is up about 14% since the recent low, following the rise in gold.
GDX4

GDX. 

What happens next is anyones guess. Boths assets should have more room for continued convergence.

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