In a recent interview on CNBC’s Squawk Box, Katie Stockton, the founder and managing partner at Fairlead Strategies, expressed her unique perspective on the relationship between gold and Bitcoin, diverging from the prevailing views of many investors who see a strong correlation between the two assets.
Stockton highlighted the notable performance of the S&P 500, which has risen approximately 11% year-to-date and nearly 30% since lows recorded earlier in the year, a period she referred to as “Liberation Day.” Despite this upward trend, she cautioned that recent pullbacks should be considered healthy corrections, buoyed by the solid support of the 20-day moving average.
Regarding gold, Stockton pointed out that it has successfully breached critical resistance levels, which hints at an additional potential upside of around 4%. She underscored gold’s role as an essential diversifier in investment portfolios, especially as some investors are beginning to look at gold as an alternative to Bitcoin due to its diminished correlation with equity markets.
While discussing the current state of Treasury yields, Stockton noted they are testing a support line near 4%. Should yields decline further, it could trigger a cyclical downtrend towards 3.2%. This scenario paints a relatively favorable picture for fixed-income investments compared to equities, strengthening the rationale for diversification in investment strategies.
Focusing on the cryptocurrency market, Stockton remarked on Bitcoin’s ongoing long-term uptrend, identifying support levels between $108,000 and $111,000. Despite expressing cautious sentiment about the alignment of September and October with her initial predictions, she reaffirmed Bitcoin’s tight correlation with the Nasdaq 100 index. Her bold forecast projects Bitcoin reaching $135,000 by early 2026, juxtaposing her outlook against Tom Lee’s prediction of a year-end surge.
Ethereum has also garnered attention, having surpassed the $4,000 mark, which signals ongoing technical strength. Meanwhile, Dogecoin has broken out of a triangle pattern, aligning with broader momentum trends in the cryptocurrency space.
Stockton emphasized her investment strategy prioritizing technical momentum over fundamental analysis. She advocates approaching risk assets at carefully considered entry points, maintaining a diversified portfolio throughout the investment landscape.
