The price of bitcoin has been moving in the same direction as gold since June. That could not go unnoticed.
The correlation between bitcoin and gold has increased two times recently, writes Bloomberg. This measure over the past year is 0.496, but for the last three months it has spiralled up to 0.837. (A correlation coefficient of 1 indicates that the assets move perfectly alongside each other, whereas -1 shows the change in exact opposite directions).
Bloomberg notes that three months of trading data isn’t enough to draw ideal statistical conclusions, but yet the trend should not be ignored – investors always seek a refuge at times of turbulence. Something similar happened in 2016 when the UK announced the exit from the European Union, causing the pound to take a sharp dive. Since then economic and political uncertainty provided more evidence that bitcoin joined gold as a heaven asset.
But bitcoin is not only affected by market forces, adds Bloomberg. Tether, a stablecoin, likely plays a major role in the liquidity of crypto markets and has an impact on bitcoin. These occurrences lead to beliefs that such moves cannot be random.
