A study by Arcane Research says that the correlation of gold and bitcoin prices (BTC) is now at the highest level since August 2016. Competing assets together rose in value at the beginning of 2020.
Just six months ago, the correlation was zero, but then it rose to a four-year high. The authors of the report emphasize:
“This (increased correlation) no doubt strengthens the position of digital gold, that is, bitcoin.”
The Weekly Update: Same reaction to news for bitcoin and gold - Is bitcoin emerging as a new safe haven asset? Read more about this and other highlights in our weekly market update: https://t.co/3492qSaEjF pic.twitter.com/GTXrCmohrP
- Arcane Research (@ArcaneResearch) January 10, 2020
A similar study in early January was published by analysts at Bloomberg. One of its authors, Michael McGlone, said that we are seeing how BTC becomes "digital gold."
One of the factors confirming this pointview, the cryptocurrency took off in parallel with the jump in gold prices after the assassination of Iranian general Soleimani. Recall that gold and bitcoin were trading in positive territory for several days and reached a maximum on January 8. Gold soared this day above $ 1,600 per troy ounce, at its highest level over the past seven years.
Investors see Bitcoin as a safe asset in digital format, which is why they simultaneously increased their investments in BTC and gold.
Analysts at Arcane Research say that so farthe correlation between metal and cryptocurrency is imperfect, but now it is safe to say that in the long term the interdependence of price dynamics can become constant.</p>