Bitcoin-Gold Correlation Near Record High, Investor says BTC Will ‘WAY Outperform' the Metal in 2020

  • The (Peterson) correlation between gold and BTC climbed to 0.217, last seen in October 2016
  • Are we seeing the emergence of a new safe haven asset?

Last week, the tension between the US and Iran that rose resulted in Bitcoin showing signs of being “digital gold.”

It all started with the announcement of the Iranian general Qassem Soleimani’s death. Gold and bitcoin both jumped shortly after the news. A couple of days later, both digital gold and gold spiked together when the news about Iran bombing Iraq broke out.

Lastly, when President Donald Trump gave his de-escalation speech, the price tumbled at about the same time.

This isn’t something that happens very often. The rare occurrence of such events led industry commentators to believe that this could mean Bitcoin is becoming a “safe haven.”

Interestingly, Bitcoin’s correlation with gold has risen to 2016 levels. The (Peterson) correlation between gold and BTC climbed to 0.217 on Jan. 10. This level was last hit in October 2016 and before that in April 2013. The highest this correlation has ever been was in early October 2016 at 0.22.

Source: Coin Metrics

The correlation between both assets was below zero about half a year ago but these levels haven’t been seen since August 2016 and strengthen the “digital gold” narrative for bitcoin.

Although, it can’t be ignored that this is just short-term price action which could be a spurious correlation. So, a long term evaluation is necessary to see if this holds any merit.

But Bitcoin has started to make a transition from a risk-on asset to becoming a safe haven as the leading cryptocurrency finds a place in the world market and investors' portfolio.

Bitcoin already offers more crucial benefits over gold in today’s world of censorship, lack of privacy, and fear and threat of confiscation.

When it comes to being an investment with better returns, Bitcoin beats gold, with a wide margin.

In 2019, while gold surged 18%, Bitcoin price saw an increment of 90% in its value. Investor Preston Pysh expects the same trend to follow this year as well. Pysh said,

“Since March 2019, Gold has started to outperform the S&P500. I expect that trend to persist moving forward. But, I think Bitcoin will WAY outperform gold. Bonds are a disaster – they are all denominated in fiat – good luck with that long-term.”

Currently, gold is making a retracement, down at $1,550 per ounce after reaching its nearly seven-year high on Jan. 10 at $1,562 per ounce. The yellow metal could see more downside from here, according to analysts.

Bitcoin, on the other hand, has fallen from $8,450 last week to $8,080. Just like the price, trading volume has also declined from over a billion to about $533 million.

Bitcoin (BTC) Live Price

1 BTC/USD =$9,500.3250 change ~ -1.00%

Coin Market Cap

$174.73 Billion

24 Hour Volume

$12.11 Billion

24 Hour VWAP

$9.92 K

24 Hour Change

$-94.8348

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,440FansLike
2,795FollowersFollow
4,189FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

China’s Largest Mining Chip Maker, SMIC, Gains Regulator’s Approval On $2.8B IPO

One of China’s biggest semiconductor manufacturer, SMIC, announces plans to raise a $2.8 billion public sale IPO on the Sci-Tech Board of the...

Bitcoin Flash Crashes to $8,600 with BitMEX Shenanigans at Play Again

Bitcoin doing bitcoin things! Today, Bitcoin had yet another moment like March 12, although the price didn’t crash that low. https://twitter.com/100trillionUSD/status/1267835341987340288 Yesterday, Bitcoin jumped as high as...

AVA Labs Integrates Chainlink’s Decentralized Oracles to Improve DeFi Dapps Development

AVA blockchain, becomes the latest platform to add Chainlink, a decentralized oracle system to its platform. The integration of Chainlink to the Dapp blockchain...

Binance Korea to Improve KYC/AML Framework With Coinfirm's Compliance Solution

Binance South Korea unveiled a unique partnership with Blockchain analytics firm, Coinfirm that will help Binance remain compliant with the strict AML framework...

2nd Largest BTC Mining Pool, Poolin, Collabs With BlockFi, To Boost Crypto Lending Service

Poolin and BlockFi have formed a partnership as the latter aims to extend loans to the mining pool. Bitcoin (BTC) and mining equipment...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today