Before this week, Bloomberg showed interesting info regarding gold and silver bitcoin. As stated by the latest statistics , the correlation between gold and silver bitcoin has improved by nearly 100 percent in the past 3 weeks alone.
Statistics demonstrates that over the last year, the correlation between gold and silver bitcoin has been 0.496. From May until the beginning of August, this number has nearly doubled around 0.837. A coefficient over 1 will indicate perfect correlation as a coefficient under 1 finish non-correlation.
Gold and Bitcoin
Bloomberg emphasized that during the previous year, the correlation between gold and silver digital gold has become more or less arbitrary. The two resources traded roughly 49 percent of their time. Since the 8th of May 2019, the resources have traded in tandem the overwhelming 58 percent of their time.
It is mentioned in the content that correlation doesn’t necessarily indicate causation. It is further indicated that Tether (USDT) has a massive effect on bitcoin’s cost and the general liquidity of the crypto marketplace.
Additionally, it is mentioned that the geopolitical and macroeconomic factors play a massive part in the interpretation of their information. The effects of the escalating trade wars between China and the United States can drastically change the information within the duration of a couple of days.
This is most likely why digital gold is valued so highly at recent occasions. Bitcoin is more or less getting a worldwide secure sanctuary being made more appealing by its own non-sovereign attributes and unpredictable geopolitical background. Digital gold is rather literally, doing exactly