Bitcoin’s market correlation with gold has hit an all-time high, leading to the crypto-asset being praised for its store-of-value potential.
According to a tweet published by professional data analytics and crypto trading services firm Skew, bitcoin’s one-month correlation with gold has reached an all-time high. The firm reported the correlation provided support for bitcoin’s “store-of-value narrative” and a suitable alternative to inflation-prone fiat.
Charles Edwards, founder of digital asset algotrading firm The Capriole Fund, echoed the sentiment that bitcoin was emerging as “digital gold.” According to Edwards, BTC-Gold correlation tends to spike during periods of market risk, nearly doubling prior to bitcoin’s all-time highs.
Despite the positive sentiment toward’s bitcoin as a store-of-value asset, Edward’s was also quick to point out that gold could interfere with bitcoin’s price.
According to Edwards, bitcoin’s price dipped 5 percent on August 11 in lock-step with the price of gold, which underwent a dip in value.
Edwards also warned that global economies were being buoyed by the injection of trillions in capital, concluding that the market was being held together by “the printing press only.”
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