07 Aug 2019 Pavel Petrov
Bitcoin And Gold Have Experienced Value Spikes
Bitcoin has proven itself to be dubbed as the “digital gold,” but the latest upward price rallies turned to be little more than just volatility. Bitcoin’s price closely follows the trend that Gold (AUX) sets on traditional markets. The “price dance” between BTC and Gold takes place during a period of a trade war between the U.S. and China. Throughout this period, the central banks eased their monetary policies worldwide, which was coupled with a sluggish growth of the global economy.
Gold prices went up, surpassing the $1,500 barrier and Bitcoin was observed to settling at around $11,500. The tendency of BTC and gold prices to inform one another has been recorded in the past, and drove up the number of investors that seek an asylum during the upcoming financial storm.
Looking at the 3-month graphs, Bitcoin and Gold price movements were almost at identical paces, both up and down. The last back-to-back rally was three years ago when Great Britain voters chose to leave the European Union. Bitcoin joined Gold and other precious metals as a haven for investment funds, as the British sterling repelled.
Now, the tension between China and the United States evolved into a tech-orientated Cold War. The Chinese Yuan dropped in price, setting pressure on the worldwide economy and U.S. importers into China.
In times of calm and peace, the correlation between Bitcoin and Gold drifted around 0.496, but in the past three months, the correlation spiked to 0.827. Stablecoin Tether also plays a significant role in Bitcoin’s correlation to Gold, as the stablecoin project is dubbed as a gateway for traditional investors into the world of Bitcoin.
Since 8th May 2019, both Bitcoin and Gold prices have been shifting at around 58% of the time, creating a premise for an increase in the number of investors.
As of press time, Bitcoin is trading at $11,611.31, with close to $20 billion in daily trading volumes and over $207 billion in market capitalization. Bitcoin’s dominance over other cryptocurrencies is 68.3%Bitcoin Cryptocurrency Crypto Market Bitcoin Gold Bitcoin Gold Price Bitcoin price bitcoin news Gold