A widely followed crypto analyst and trader is forecasting that Bitcoin (BTC) will start outperforming gold.

In a new video update, the host of InvestAnswers tells his 565,000 YouTube subscribers that the top crypto asset by market cap should outpace gold over the coming months, as he says the precious metal looks overextended following its parabolic rally to $3,500.

“If you look at the steady correlation between Bitcoin and Nasdaq, it is extremely tight because Bitcoin is considered a risk asset, [while] gold is considered a risk-off asset. But here, if you look at the Bitcoin/gold correlation, it fluctuates very heavily. Half the time, not correlated; half the time, it is correlated.

So there’s no signal of direct correlation and Bitcoin has already had a great post-halving, and in fact, we had hit a new all-time high before the halving, which has never happened before with Bitcoin. But its correlation with gold remains low.

Now, if I look at this chart and just like a caveman would, what do I interpret? I expect the correlation to increase with gold as the broader dynamics of the market will shift as well. I also believe gold is overbought, so I see gold mean-reverting and I see Bitcoin going up versus gold over the next six months.”

InvestAnswers says a summarized interpretation of his analysis would be that the flagship digital asset is lagging behind gold and will start to outpace the precious metal during the next six months.

BTC is trading for $93,870 at time of writing, a fractional decrease during the last 24 hours while gold is valued at $3,283 per ounce, a marginal decrease on the day.

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Coinbase Asset Management is rolling out a new fund for institutions to receive a yield on their bitcoin (BTC) holdings.

Opening on May 1 for non-US institutional investors, the Coinbase Bitcoin Yield Fund aims to deliver a 4% to 8% annualized net return, according to a press release on Monday.

Among those backing the fund, Abu Dhabi-based Aspen Digital said yield will initially be generated through basis trading, with lending and options strategies to be used in the future.

The so-called bitcoin basis trade involves capitalizing on the spread between futures and spot markets. It became popular at the tail end of 2024 as hedge funds notched a record high of $14.2 billion in BTC short positions, whilst simultaneously buying spot bitcoin ETF shares.

The strategy produces yields depending on the spread between both markets, but isn’t immune to risk. For instance, if an entity was short $1 billion on a BTC futures product and the price of BTC was to wildly surge, that entity would need to keep adding margin to avoid liquidation.

Also, as the trade becomes more crowded, the spread and subsequent yield could become very thin. This has already led to a number of hedge funds exiting the trade early this year, with the short figure on Chicago Mercantile Exchange now standing at $8.4 billion, down from $14.2 billion four months prior.

Coinbase’s new product stirs memories of former crypto lender BlockFi’s yield platform, which opened in 2019 but ultimately failed alongside crashing prices in 2022.

BlockFi’s fund, however, differed from Coinbase’s latest product in that it generated its yield through lending, rather than a lower-risk basis trade.

Stocks were slightly up at open on Monday ahead of major earnings reports, including for the Magnificent Seven.

The market looked to bounce even as tariffs remained a key issue that investors are increasingly seeing as a source of major uncertainty. The S&P 500 opened 0.28% up, while the Dow Jones Industrial Average gained 0.45% and Nasdaq added 0.21%.

Across the market, Bitcoin (BTC) was up nearly 2% above $95k and gold +0.3% around $3,307 per ounce. 

However, the U.S. Treasury yields also remained high on Monday, with the benchmark 10-year Treasury  yield up 2 basis points to 4.29%. Meanwhile, the 2-year Treasury yield was at 3.76%.

Tariffs, earnings and economic data key this week

The S&P 500, Dow Jones Industrial Average and Nasdaq futures had slipped ahead of U.S. markets opening on April 28, with focus in the week set on upcoming Big Tech earnings.

As well as tariffs, still an area of notable uncertainty, the market will also be keen releases on the economic data front. 

While President Donald Trump’s tariffs remarks and an easing of pressure on Federal Reserve chair Jerome Powell helped Wall Street extend weekly gains last week, the U.S.-China trade war situation remains largely cloudy.

“I think there is a quiet, bubbling frustration about the status of these negotiations and the status of tariffs,” Jake Sherman, founder of Punchbowl, told CNBC’s ‘Squawk Box’.

Focus through the week will however not be just on the tariffs corner. 

Earnings and Fed’s personal consumer expenditure will highlight the week. Notable quarterly financial results investors are likely to pay attention to are from the Magnificent 7 that includes Big Tech giants Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and Meta (META).

“Markets have rebounded very nicely off the lows,” said Stephanie Link, chief investment strategist, head of investment solutions at Hightower Advisors. “I think we can continue to rally if earnings continue to be good.”

The earnings come through the week, while PCE data, Fed’s preferred inflation gauge, will be out on Wednesday April 30.