bitcoin minority safe haven

Bitcoin (BTC) and gold enthusiasts have been against each other on which is a better long term store of value for the past decade or so. The constant wrangles between gold’s low volatility and BTC appreciation in price is a never ending debate but as per data collected through the year the prices of the two assets are starting to gel as BTC recorded its highest correlation with gold prices in a year.

Gold-BTC Correlation at its Highest Point Ever!

While the correlation of Bitcoin and gold has been on the rise for the better part of the year in 2019, Dec. 2 marks the highest point in positive correlation the two asset have reached at 0.3. Since June 2018, the price of an ounce of gold spiked from 0.15 BTC to over 0.39 BTC in Feb 2019 before crashing back to 0.15 BTC representing a zero change in price despite the fall in BTC’s price since July.

In early 2016, the correlation between the two SoV assets reached its peak (albeit o the negative scale) at 0.45, the highest correlation between gold and BTC.

Global Political, Socio-Economic Challenges On the Rise

The China-U.S trade war, constant nuclear threats from Iran, North Korea and Israel, and a multitude of political and socio economic rift have caused a number of investors to resort to “safe haven” assets. Gold and Bitcoin seem to be the choice of investment as both saw huge increase in price over the course of the year in light of global instability.

Starting off at $1,279 USD in January, the price of gold per ounce gradually grew to $1,551 USD in September representing an explosive 21% growth during the timespan. In around the same time, BTC’s price grew from sub-$3,500 levels to over $13,500 in July, representing a magnanimous 280% growth but has since experienced a reversal towards the $7,500 level.

The post Gold and Bitcoin (BTC) Prices Register Highest Annual Correlation Ever appeared first on Coingape.

Source: Coin Gape