The crypto market looks pretty mixed today with Bitcoin trading in the red, but a lot of altcoins trading in the green.
At the moment of writing this article, BTC is priced at $10,345.10.
Bitcoin’s correlation with gold
Coindesk just revealed that Bitcoin is now more closely tied to safe-haven gold than ever.
It’s been also reported that this could bring the king coin some greater resilience to risk aversion in traditional markets.
The 60-day correlation between the two assets is hovering at record highs above 0.5, according to Coin Metrics data, as cited by the online publication mentioned above.
“The positive correlation has strengthened sharply since the beginning of July, as the U.S. dollar started taking a beating against other major currencies,” they note.
The online publication continues and reveals that “the sell-off in the greenback, the global reserve currency, is seen as boding well for scarce assets like bitcoin and gold.”
Bitcoin is a great safe haven
They also noted that the fact that this correlation appears to grow stronger will only validate the belief that BTC is a great store of value and a safe haven.
A lot of people have been seeing BTC like this in 2020 despite the global crisis.
There are various investors who believe it is sound money, like gold.
This means that BTC’s sensitivity to movements in risk assets especially equities could drop.
It’s been also revealed that Bitcoin defended the $10,000 support for the fifth straight day on Monday, despite losses on Wall Street.
It’s been also revealed earlier that there’s a popular crypto analyst who called Bitcoin’s recent drop in price from $12k to $10k.
The analyst warned traders and “buy-the-dip” enthusiasts that Bitcoin’s price will probably fall in the short-term.
The trader said that BTC is likely to retreat to below $4,000, shaking out weak hands before clearing a long-term path to all-time highs.