A report by Digital Asset Data suggests that bitcoin in the last three months has moved in tandem with gold. The research shows that there is an ongoing correlation between gold and other traditional assets. According to a Bloomberg report, the correlation between the price of gold and bitcoin has almost doubled from 0.496 to 0.837 in past three months. Statistically, +1 represents the perfect correlation, and -1 depicts complete non-correlation.
According to the report, if bitcoin continues to follow the gold’s trend, it might see a massive drop in the coming days. Many economists and businessmen have predicted a global recession in the coming years, and bitcoin is being promoted as a safe haven for investors this time. Gold is also considered as a safe haven, but the return on this hedge asset is not expected to increase as much in comparison to bitcoin.
Before this year there was no correlation between the gold and bitcoin, but now researches show that the leading cryptocurrency has been moving in synch with the gold. Ryan Alfred, president of Digital Assets Data, said that finding shows that bitcoin is starting to behave more like a store of value and is being used as a safe-haven asset during global uncertainty in traditional markets.