Bitcoin gold correlation increases in the middle of banking turmoil and exceeds stocks

Bitcoin gold correlation increases in the middle of banking turmoil and exceeds stocks

Studies by the blockchain analysis company Kaiko show that the correlation from Bitcoin to gold has increased to the highest level in March for over a year.

The newly discovered correlation has occurred in the middle of a falling correlation to the stock market, which indicates that Bitcoin may drift towards a risk-averse asset status.

Bitcoin as a digital gold

according to Kaikos report, the correlation between Bitcoin and gold is now 50 %. In the meantime, his stock market correlation is around 20 %after it has been declining since December.

"This is a significant shift, because in the course of 2022 Bitcoin and gold were largely uncorrelated," Kaiko analyst Dessislava Aubert told Decrypt. "So it didn't move as a safe port [Asset]."

bitcoin bulls have often even compared with "digital gold" hypotheses that it could replace the precious metal as a secure money instrument of the 21st century. Like gold, Bitcoin is reliable, divisible and pure, but offers additional advantages of digitization that make it an effective form of money.

But the theory could not do justice for a long time. Bitcoin and crypto correlated heavily with the stock market all over the past year, often well over 50 %, since risk systems collapsed in view of the increasing interest rates of the central banks worldwide.

At the same time, the correlations between Bitcoin and gold were often 0 % or negative. This happened when the annual inflation reached several 40th anniversary-a phenomenon against which Bitcoin and gold are supposed to fight.

panic in the banking sector

Things changed in mid-March when Bitcoin climbed $ 28,000 and gold just under $ 2,000/oz after banking over the United States. After the Silicon Valley Bank and the Signature Bank were closed, the Federal Reserve agreed to stop all inserters and to bring hundreds of billions of dollars of liquidity again to prevent further bankruptcy.

In fact, the deposits of banks recently recorded their 9th weekly decline in a row, with large banks recording drainage of $ 129 billion-the greatest weekly number of all time.

Last week Bloomberg analyst Mike McGlone predicted that could be able to break through his all-time resistance of $ 2000 when the banking crisis stops. Instability has already spread in Europe, where the Credit Suisse War bought experienced a short increase in demand for the costs of his loss insurance.

In a similar way, the Bitcoin bulls are enthusiastic that the macro. BITMEX co-founder Arthur Hayes last month wrote an essay on this topic and argued that the Bank Term Fining Program of the Federal Reserve will pump a similar amount of money as the Covid aid and similar positive effects Shares and crypto will have.

The former CTO of Coinbase, Balaji Srinivasan, went so far to rely $ 2 million on the price of Bitcoin, which reached $ 1 million in less than $ 3 months than hyperinflation. But even the Bitcoin standard author Saifedean Ammous-who argued in his book that Bitcoin is superior as money- Doubt will manifest this prediction.

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