Analysis: Bitcoin Moving the Same Direction as Gold
The correlation between Bitcoin and Gold has doubled during the last three months against the background of the current state of international policy. The same was in 2016 when the UK decided to leave the European Union.
During the last three months, the correlation between digital and physical gold has almost doubled, according to BNN Bloomberg. Over the past year, the coefficient was at 0.496, in the past three months this has almost doubled to hit 0.837 — where a coefficient of +1 indicates perfect correlation, and -1 complete non-correlation.
Tim Culpan emphasized that three months is not long enough term, so the dynamics cannot be a confirmation of any theory. Though, he recalled that we noticed a similar phenomenon three years ago when U.K. voters had just made the surprise decision to exit the European Union. Their movements had been alike. It proves that the political and macro-economic factors influence the behavior of the assets.
The specialist has supposed that the price of Bitcoin changes not only due to the market factors, but Tether also plays a significant role in the liquidity of the asset and influence the price. Along with this, the recent movement of gold and Bitcoin doesn’t appear random to Culpan.
We recall that the specialists of the crypto exchange named San Francisco Open Exchange (SFOX) reported that the correlation between Ethereum and Bitcoin had increased in comparison with the other altcoins.