The correlation between digital gold and physical gold has nearly doubled in the past three months, according to new data from Bloomberg revealed on August 7.
The statistics show that although the correlation between Bitcoin (BTC) and gold over the past year was 0.496, in the last three months, this number has nearly doubled to 0.837 – in which the coefficient of the relation with +1 is considered the perfect positive correlation and the correlation coefficient has a value of -1 showing perfect negative correlation.
Simultaneously increased 58% since May Bloomberg noted in the past year, the correlation between assets is random: with two assets traded inversely 49%, in a correlation decline of 22% and in cents 29% increase in correlation. However, since May 8 this year, their transactions have increased simultaneously to 58%.
The article also notes that 3 months is a relatively small data set, as well as the fact that the correlation does not imply a causal relationship. Furthermore, its author argues that stablecoinether (USDT) has had a significant impact on Bitcoin prices and the liquidity of the electronic money market.
Correlation between Bitcoin and gold, from the beginning of the year until now and the past 3 months. Source: Bloomberg Opinion However, the current geopolitical context and macroeconomic trends can also explain data. The article noted the unfavorable impact of escalating trade tension between the United States and China on the world economy – accordingly, as investor Tim Draper argued earlier this week, Bitcoin has can become a “special barrier”.
Safe haven property of the digital age The fact that Bitcoin is increasingly recognized as a safe haven asset is being fueled by its relevance to its non-sovereign properties in the geopolitical context. unpredictable. This currency “is doing exactly what it was designed for today,” blockchain and electronic money lawyer Jake Chervinsky argued earlier this week.
Jeremy Allaire, CEO of electronic money payment company Circle, recently said that macroeconomic instability is boosting Bitcoin’s price rise as “a non-sovereign, high security mechanism to Value storage can exist anywhere with internet “.
Macro factors – including the central bank’s monetary easing policy change – have also been cited in relation to the performance of Bitcoin price increases by different analysts in the weeks. recently.
Although this general mentality has been repeated recently by founder Morgan Creek Digital Assets, Antony Pompliano, on the contrary, he also notes that the unique value of Bitcoin can be best preserved if it maintains “the correlation with the remaining markets, especially in the period of global instability”.