• Bitcoin has been increasingly correlated with gold, providing investors with a safe haven in the face of banking crises and rising interest rates.
• The surge in demand for Bitcoin is due to its rising correlation with gold, which now stands at 57%.
• Bitcoin’s decentralized nature provides investors with greater control over their assets and reduces their exposure to systemic risks.
The Correlation Between Bitcoin and Gold
Bitcoin, the digital currency once considered a volatile investment, has recently found an unexpected ally in the form of the age-old commodity: gold. Since March, the correlation between the alpha crypto and the precious metal has steadily increased, providing investors with a safe haven in times of banking crisis and increasing interest rates.
What’s Driving The Partnership?
The rise in demand for Bitcoin is due to its growing correlation with gold, which now stands at 57%, as per data by market analytics firm Kaiko. This increase is driven by investors seeking a more reliable alternative to traditional safe haven assets like gold during times of financial instability. The decentralized nature of Bitcoin also provides added protection against inflationary pressures or government interference.
Benefits Of Investing In Bitcoin
Investors are becoming increasingly aware of the advantages that come from investing in Bitcoin rather than traditional assets such as stocks or bonds. These include:
• Greater control over assets – unlike fiat currencies or other traditional investments, Bitcoin operates independently from central banks, giving users greater autonomy over their money
• Decentralized nature – transfers can be done without intermediaries making it less vulnerable to systemic risks while still offering a level of security unmatched by other investments
• Higher returns – BTC currently trades near $30,000 psychological level at $28,936 recording an impressive rally of 3% in last 24 hours
As banks continue to deal with crises and uncertainty grows throughout global markets, investing in cryptocurrency such as bitcoin offers a secure alternative for those looking for stability and peace-of-mind when it comes to their finances. With its increased correlation with gold and potential for higher returns than traditional investments along with its added benefits such as decentralization and greater autonomy over funds, it’s no surprise that more investors are turning towards cryptocurrencies as a sound investment option even if they don’t understand all aspects of blockchain technology yet.