The world's # 1 cryptocurrency, Bitcoin, has maintained a very loose relationship with other assets during its brief history, but that could change, according to a recent chart. According to the Cryptography-related analysis report from Digital Asset Data, there is a growing correlation between Bitcoin and traditional assets such as gold and equities.
Here is what Bitcoin's relationship with the stock market and gold look like in the last 90 days.
Before the start of the Bitcoin rally in 2019, there was little correlation between Bitcoin and other markets. However, Bitcoins apparently move in unison with gold. There is therefore a continuing war between the two camps on which assets can be considered as a better store of value before the global economic crisis looms.
According to supporters of "digital gold", the shiny metal is too old for the digital era. It was at the heart of Grayscale's "Drop Gold" campaign.
As the chart shows, the BTC is in perfect correlation with US equities.
Statistically, correlation is defined by the tendency of assets to move in the same direction over a given period. A positive positive correlation, in which two securities move in full lockout, is represented by the value 1 (or 100%). With a perfect negative correlation, it is represented by the negative 1.
In this case, the company reviewed the price performance of gold GC.1, -0.72%, SPDR S & P 500 Trust ETF SPY, -0.06%, a popular exchange-traded fund against Bitcoin over a 90-day period. The report shows that Bitcoin and Gold have gone up, while the S & P 500 has slipped.
President Ryan Alfred of Digital Assets Data said:
"The results suggest that Bitcoin acts more like a store of value and can potentially be used as a safe haven asset in times of global uncertainty in traditional markets."
Although bitcoin is still largely considered an unusual investment, a blockchain approach, the technology on which most digital assets are based, has been won by traditional Bitcoin companies, giving it more attention and legitimacy. .
Sources: U today