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BTC’s Correlation With Gold Has Increased, Hinting At A Growing Safe-Haven Status: Va

▪ Long-term bitcoin correlations with traditional asset classes remain low
 ▪ Bitcoin ETF may have “significantly” reduced the volatility during the recent sell-off

In the past few weeks during the COVID-19 pandemic, we saw the correlation between bitcoin and the stock market surging to a new high. However, according to Gabor Gurbacs, a digital asset director at VanEck, bitcoin’s correlation to gold also jumped in 2020.

Talking about the investment case for Bitcoin, in his latest report Gurbacs said, previously, because of bitcoin’s low correlation to traditional asset classes including broad market equity indices, bonds, and gold, it has been good for portfolio diversification.
But its correlation with traditional assets began to increase during the COVID-19 induced global market sell-off. And still, “a small Bitcoin allocation may have reduced volatility for 60%-equity/40%-bond portfolios.”