The narrative surrounding Bitcoin has often changed, starting as a peer-to-peer form of digital cash, to a store of value, and eventually, to a safe haven asset like gold.
The concept that Bitcoin will someday behave similarly as the precious metal is becoming increasingly valid after more than a year of correlation alongside the original safe-haven asset. And with a potential economic collapse currently underway, that theory will be put to the ultimate test.
Looking Back of a Year of the Cryptocurrency’s Correlation With Gold
Following Bitcoin’s highly publicized meteoric rise into the mainstream, the first-ever cryptocurrency spent all of 2018 locked in a downtrend and bear market, taking the price of the asset from an all-time high of $20,000 to as low as $3,000.
In early 2019, however, the asset began to show signs a base was building, and the asset was being accumulated. Around the same time, a similar pattern took shape in gold.
All of this was taking place as tensions between the United States and China and an ongoing trade war picked up in severity.
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Author: Tony Spilotro