In the latest cryptocurrency newsletter, Bloomberg stated that the correlation between Bitcoin (BTC) and gold, according to its ledger, is at its highest level since 2010:

The correlation between Bitcoin and gold. Source: Currency Metrics.

If you look at the chart above, or find other charts online that track the relationships between the two origins, you will likely see something that conflicts with Bloomberg’s claim. However, according to Bloomberg, it is 0.80. However, there is a caveat here: Bloomberg calculates this account differently from many other data providers:

“In 12 months, quasi-currencies correlated around 0.80, the highest correlation in our database since 2010.”
Bloomberg analyst and newsletter author Mike McGlone explained the company’s accounts:

Bloomberg standard and simple function% change. The monthly percentage change on a rolling 12-month basis over the past 12 months is the highest in our database. ”
Instead of determining the correlation every day, Bloomberg calculates the correlation between this data on a monthly basis, hence the difference.

McGlone believes that the recent drop in the bitcoin price was caused by the fall in the Nasdaq index and concluded that if gold maintains the price level above $ 1900, he expects the bitcoin to remain above $ 10,000.

The high standard correlation between the two hedges can be explained by the fact that we are witnessing a unique economic turmoil in Bitcoin’s short history. Pumping trillions of fiat currencies into the global economy could prompt investors to seek refuge in alternative assets.

Source: CoinTelegraph

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