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