Bitcoin’s Rising Correlation With Gold Indicates Investors See It as a Safe-Haven, Says Bank of America Market Strategists – Finance Bitcoin News

Bank of America Securities market strategists have explained this week in a note that bitcoin, the most popular crypto-asset, has been closely associated with gold. Bank of America analysts Alkesh Shah and Andrew Moss noted “that investors may view bitcoin as a relative safe haven as macro uncertainty continues.”

Bank of America’s Market Strategists Say Bitcoin’s Rising Correlation With Gold Indicates ‘Investors May View Bitcoin as a Relative Safe Haven’

Market strategists from Bank of America’s securities division, Alkesh Shah and Andrew Moss, detailedIt was revealed this week that gold and bitcoin have shown a high degree of correlation in recent months. The news follows the recent report published by the crypto data provider Kaiko, which says bitcoin has been less volatile than the Nasdaq and S&P 500 indices. According to the Bank of America strategists, bitcoin’s (BTC) price fluctuations, in terms of other global assets, have caused investors to think BTC is a safe-haven asset.

“A decelerating positive correlation with SPX/QQQ and a rapidly rising correlation with XAU indicate that investors may view bitcoin as a relative safe haven as macro uncertainty continues and a market bottom remains to be seen,” Bank of America’s securities division analysts wrote.

Bitcoin’s Rising Correlation With Gold Indicates Investors See It as a Safe-Haven, Says Bank of America Market Strategists
Bloomberg editorial photo credit

BTC (Bitcoin) and gold prices were range bound on Monday October 24th and are less volatile than equity markets. BTC trades at just over $19K per unit while an ounce.999 gold can be bought for 1,646.70 U.S. Dollars. Bank of America’s Shah and Moss have been monitoring the 40-day correlation with gold, which is around 0.50 this week. This rating, 0.50, is closer to gold than the August zero rating that the most popular crypto asset BTC received.

It comes as macro uncertainty is increasing and analysts are warning that U.S. Federal Reserve Rate hikes might cause a U.S. Treasuries liquidity emergency. Although market observers anticipate an aggressive rate rise next month, strategists predict that the Fed’s pivot will take place by December. Both gold and BTC have fallen a great deal since the two asset’s all-time price highs. For example, on March 8, 2022 when gold hit $2,074 per anounce, it reached its highest ever lifetime value against the U.S. dollars.

The U.S. Dollar has dropped 20.49% since gold’s all-time peak of 230 days ago. After reaching $69,044 for each unit, bitcoin (BTC), has lost 72% to the dollar over the past year. Gold today has an overall market capitalization of around $10.895 trillion, while BTC’s market capitalization is around $369 billion.

In this story, tags
Alkesh Shah and Andrew Moss from Bank of America. Bitcoin prices, Bofas, BTC Prices. Correlation, Fed, Federal Reserve. Global Economy. gold, Gold and bitcoin correlation, greenback, Haven. haven asset. Market Capitalization. Ounce of Gold. Safe Haven. US Dollar

What do you think about Bank of America’s Shah and Moss explaining that gold and bitcoin have been correlated during the last 40 days? Do you think investors perceive bitcoin as a safe-haven amid today’s macro uncertainty? Comment below to share your views.

Jamie Redman

Jamie Redman, the News Lead for News, is a Florida financial technology journalist. Redman joined the cryptocurrency community in 2011 and has been an active participant ever since. Redman is passionate about Bitcoin and open-source codes. Redman has contributed more than 6000 articles to News since September 2015. These articles are about disruptive protocols that are emerging.

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