Bloomberg: Correlation between Bitcoin and gold doubled in 3 months

in bitcoinandgold •  5 years ago 

During the last year, the correlation between Bitcoin and gold was 0.496, and within 3 months it reached 0.837. In this scale, the coefficient of +1 corresponds to the absolute correlation, and -1 - to its complete absence.

As noted by Bloomberg, during the year the value of correlation between the two assets varied: the inverse correlation was observed 49% of the time, the correlation on the fall - 22%, on the rise - 29%.

The analyst acknowledges that 3 months is a relatively short period of time, and the observed dynamics is not yet a confirmation of any cause-effect relationship.

At the same time, geopolitical and macroeconomic factors can influence the behavior of both assets. The author notes that 3 years ago, against the background of the referendum on Brexit, Bitcoin and gold also began to repeat the movements of each other.

"I'm not sure that Bitcoin is moving solely at the expense of market forces. Like others, I suspect that Tether plays an important role in the liquidity of the cryptographic markets and affects the price of Bitcoin," the author writes. - However, the recent movements of Bitcoin and gold do not seem random.

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