- Bitcoin’s 40-day correlation with gold was reported to be 0.50.
- BTC price hiked by over 10% after the report of U.S. retail sales figures.
- The price of a king’s coin is $19,183, up 1.20% from October 21.
After a period when it was mainly traded as a risk asset, Bitcoin‘s moves relative to other assets may suggest that investors now consider it as a haven once more, according to Bank of America Corp (BofA).
Bloomberg reported that the 40-day correlation between Bitcoin and gold was 0.50. This number was zero in August. Although the correlations between the S&P 500 and the Nasdaq 100 are higher, at 0.69 and 0.72, respectively, they have flattened out and are now below record highs from a few months ago.
Alkesh Shah and Andrew Moss, two BofA digital strategists, view that as a possible indicator of change.
The analysts wrote: “As economic uncertainty persists and a market bottom yet to be seen, investors may perceive Bitcoin as a relative haven due to a decelerating positive correlation with SPX/QQQ and a quickly rising correlation with XAU. These dynamics could lead to a re-rating of Bitcoin as an asset class.”
Bitcoin’s price rose more than 10% on Wednesday after the release of better-than-expected U.S. retail sales numbers, bolstered by a pickup in spending on cars and trucks. The cryptocurrency has rallied more than 50% this year.
The link between Bitcoin and gold was at a yearly high, according to a report by Kaiko Research earlier this month. This was based on research the company did on macro trends. The U.S. Federal Reserve’s frequent interest rate increases and the strengthening of the dollar against other fiat currencies like the pound and euro were cited as causes for the rise in correlation, among other things.
Additionally, according to data from CoinMarketCap, king’s coin is selling at $19,183, an increase of 1.20% from October 21. With a $28.5 billion 24-hour trading volume, its market cap was $368 billion.
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