The correlation between bitcoin and gold doubled in the last three months

The correlation between bitcoin and gold doubled in the last three months

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Over the past three months, the correlation between digital and physical gold has almost doubled, according to Bloomberg.

So, if last year the correlation dependence between these two assets was at the level of 0.496, then over the past few months this figure has reached 0.837. Thus, the statistical relationship was almost doubled.

However, the situation varied throughout the year: the inverse correlation during this period was observed 49% of the time, with a fall in both assets – 22%, and on the rise – 29%.

Nevertheless, the analyst of the publication admits that three months is not a long enough period of time to draw convincing conclusions, while the correlation does not always imply causality.

On the other hand, the expert admits that amid growing global tensions, largely due to the trade war between the US and China, investors are increasingly considering bitcoin as a hedging asset and a “safe haven”.

Meanwhile, gold from the beginning of this year grew by 16%, reaching the marks of six years ago:

Bitcoin price, meanwhile, worked out the “Bull Flag” trend continuation pattern, rising again above the $ 12,000 mark.

Earlier, ForkLog published a lot of material about why the first cryptocurrency inversely correlates with the traditional market.

The correlation between bitcoin and gold doubled in the last three months

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