[05-03-2019] Bitcoin-Gold Price Correlation Shows Widest Spread in Over a Year

[Janpie]

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Bitcoin-Gold Price Correlation Shows Widest Spread in Over a Year

Omkar Godbole
Omkar Godbole , Sam Ouimet ,
 May 3, 2019 at 13:00 UTC Updated May 3, 2019 at 13:15 UTC
With gold on the defensive and down roughly 6 percent since mid-February, bitcoin may continue to shine brightly in the near future. After all, experts have found the two assets to be inversely correlated.

The 90-day correlation coefficient between bitcoin and gold – a statistical measure of linear interdependence between the two variables – is currently seen at -0.71, the lowest level since March 20.

A negative number represents an inverse relationship, i.e. meaning the two variables are moving in opposite directions, which has been the case between bitcoin and gold since November.

For instance, the yellow metal found takers at $1,200 on November 13 and was flirting with the psychological resistance of $1,300 at the end of December. During the same period, bitcoin, fell from $6,200 to $3,122, according to Bitstamp data.

Read more: https://www.coindesk.com/as-gold-prices-stumble-inverse-correlation-with-bitcoin-reaches-14-month-high

[CryptoBry]

The physical gold is always considered to be the safe haven by many investors big and small and that is why during crisis of different types people are staking their wealth with gold. Now, the landscape is changing due to the arrival of Bitcoin which many considered to be the digital gold. Indeed, there are many similarities but also differences. Bitcoin is very volatile which turned off some people but also make some people getting more interested and exciting as volatility can be turned into profits done the right way. So far, the physical gold has been growing so slow and maybe boring for some but still in terms of marketcap physical gold remains to be on the top. I am seeing that Bitcoin and physical gold to be sitting side by side in many investors' portfolios.

[anu1908]

just a suggestion, you might want to delete some part of your post above as it explicitly shows that you either copy the content from some newsfeed or from an article directly without no editing and just adding the source at the end of your post.

So far, the physical gold has been growing so slow and maybe boring for some but still in terms of marketcap physical gold remains to be on the top. I am seeing that Bitcoin and physical gold to be sitting side by side in many investors' portfolios.

it will rise when we see more crisis and heavy inflation which might happen sooner than we think.

[magneto]

With gold on the defensive and down roughly 6 percent since mid-February, bitcoin may continue to shine brightly in the near future. After all, experts have found the two assets to be inversely correlated.

The 90-day correlation coefficient between bitcoin and gold – a statistical measure of linear interdependence between the two variables – is currently seen at -0.71, the lowest level since March 20.

A negative number represents an inverse relationship, i.e. meaning the two variables are moving in opposite directions, which has been the case between bitcoin and gold since November.

I still wouldn't take this as solid evidence that gold and bitcoin are somehow inversely correlated.

After all, this is solely based on the sample of this year alone, and obviously we saw rallies beginning to come back into the market after the period of bearishness, so if you look at any depreciating asset in this short term you would also arrive at the conclusion that they too, are inversely correlated with BTC.

Is that proof enough? Absolutely not imo, especially considering the fact that gold and bitcoin essentially serve the same monetary purpose, although bitcoin has seen much more growth given the technology underlying it.

[CryptoBry]

just a suggestion, you might want to delete some part of your post above as it explicitly shows that you either copy the content from some newsfeed or from an article directly without no editing and just adding the source at the end of your post.

So far, the physical gold has been growing so slow and maybe boring for some but still in terms of marketcap physical gold remains to be on the top. I am seeing that Bitcoin and physical gold to be sitting side by side in many investors' portfolios.

it will rise when we see more crisis and heavy inflation which might happen sooner than we think.

Yes, that is quite expected. During crisis of any nature especially one that has potential to disrupt global alignments, physical gold can be so attractive because it is more stable and more solid. Now, some are predicting the same for Bitcoin and this remains to be seen since there had been no big financial crisis that hit within the 10 years history of Bitcoin. Once there will be a big crisis, I am wondering if people will go for physical gold, the Bitcoin or stablecoins?