Bitcoin Is Back Correlating With Gold, BoA Strategists Say

According to Bank of America research, Bitcoin’s changing connection with traditional markets suggests that investors may once again consider it a haven asset.

Since mid-August, the crypto market heavyweight’s correlation with gold has increased from zero to 0.5, according to Bloomberg, citing BoA digital assets strategists Alkesh Shah and Andrew Moss.

Its correlation with key indices has likewise leveled out below record highs, with the S&P 500 at 0.69 and the Nasdaq at 0.72.

In the face of macroeconomic uncertainty, investors may regard Bitcoin as a relative safe haven. Moss and Shah said:

“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.”

The new data suggests that Bitcoin is no longer moving in lockstep with equity markets.

According to CoinCu data, Bitcoin is trading around the $19,200 level at the time of writing, not much has changed compared to 24 hours ago.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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