{"id":14140,"date":"2022-10-24T18:07:04","date_gmt":"2022-10-24T18:07:04","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bitcoins-rising-correlation-with-gold-indicates-investors-see-it-as-a-safe-haven-says-bank-of-america-market-strategists-finance-bitcoin-news\/"},"modified":"2022-10-24T18:07:04","modified_gmt":"2022-10-24T18:07:04","slug":"bitcoins-rising-correlation-with-gold-indicates-investors-see-it-as-a-safe-haven-says-bank-of-america-market-strategists-finance-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bitcoins-rising-correlation-with-gold-indicates-investors-see-it-as-a-safe-haven-says-bank-of-america-market-strategists-finance-bitcoin-news\/","title":{"rendered":"Bitcoin\u2019s Rising Correlation With Gold Indicates Investors See It as a Safe-Haven, Says Bank of America Market Strategists \u2013 Finance Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Amid the economic uncertainty affecting a myriad of countries worldwide, Bank of America Securities market strategists explained in a note this week that the leading crypto asset bitcoin has been correlated with the well known precious metal gold. Bank of America analysts Alkesh Shah and Andrew Moss noted \u201cthat investors may view bitcoin as a relative safe haven as macro uncertainty continues.\u201d<\/strong><\/p>\n

Bank of America\u2019s Market Strategists Say Bitcoin\u2019s Rising Correlation With Gold Indicates \u2018Investors May View Bitcoin as a Relative Safe Haven\u2019<\/h2>\n

Market strategists from Bank of America\u2019s securities division, Alkesh Shah and Andrew Moss, detailed<\/a> this week that bitcoin and gold have been highly correlated in recent times. The news follows the recent report<\/a> published by the crypto data provider Kaiko, which says bitcoin has been less volatile than the Nasdaq and S&P 500 indices. According to the Bank of America<\/a> strategists, bitcoin\u2019s (BTC<\/a>) price fluctuations, in terms of other global assets, have caused investors to think BTC<\/a> is a safe-haven asset.<\/p>\n

\u201cA decelerating positive correlation with SPX\/QQQ and a rapidly rising correlation with XAU indicate that investors may view bitcoin as a relative safe haven as macro uncertainty continues and a market bottom remains to be seen,\u201d Bank of America\u2019s securities division analysts wrote.<\/p>\n

\"Bitcoin\u2019s
editorial photo credit: Bloomberg<\/figcaption><\/figure>\n

On Monday, October 24, both bitcoin (BTC)<\/a> and gold prices<\/a> have been range bound, and have been less volatile in comparison to equity markets. BTC<\/a> is trading for just above $19K per unit, while an ounce of .999 fine gold<\/a> is exchanging hands for 1,646.70 nominal U.S. dollars. Bank of America\u2019s Shah and Moss have been monitoring the 40-day correlation with gold, which is around 0.50 this week. The 0.50 rating is a lot closer and shows a stronger correlation to the precious metal<\/a> than the zero rating the leading crypto asset BTC<\/a> recorded in August.<\/p>\n

The move comes at a time when macro uncertainty has heightened, and analysts have warned<\/a> that U.S. Federal Reserve rate hikes could cause a U.S. Treasuries liquidity crisis. Market observers expect an aggressive rate hike<\/a> next month, but strategists also believe the Fed will pivot by December. Both gold and BTC<\/a> have fallen a great deal since the two asset\u2019s all-time price highs. Gold for instance tapped a lifetime price high against the U.S. dollar on March 8, 2022, when it reached $2,074 per ounce.<\/p>\n

Gold<\/a> has lost 20.49% against the U.S. dollar since the all-time high 230 days ago. The crypto asset bitcoin (BTC)<\/a> has shed 72% against the greenback<\/a> during the last year, after tapping $69,044 per unit on November 10, 2021. Gold today has an overall market capitalization of around $10.895 trillion,<\/a> while BTC<\/a>\u2019s market capitalization is around $369 billion.<\/p>\n

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Alkesh Shah<\/a>, Andrew Moss<\/a>, Bank of America<\/a>, bank of america bitcoin<\/a>, Bitcoin<\/a>, bitcoin prices<\/a>, Bofa<\/a>, BTC Prices<\/a>, correlation<\/a>, Fed<\/a>, Federal Reserve<\/a>, Global Economy<\/a>, gold<\/a>, Gold and bitcoin correlation<\/a>, gold bitcoin<\/a>, Gold Prices<\/a>, Greenback<\/a>, Haven<\/a>, haven asset<\/a>, Market Capitalization<\/a>, Ounce of Gold<\/a>, Safe haven<\/a>, Safe-Haven Assets<\/a>, US Dollar<\/a><\/div>\n<\/div>\n

What do you think about Bank of America\u2019s Shah and Moss explaining that gold and bitcoin have been correlated during the last 40 days? Do you think investors perceive bitcoin as a safe-haven amid today\u2019s macro uncertainty? Let us know your thoughts about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, editorial photo credit: Bloomberg<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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