Both assets currently tend to move in the same direction.
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Dusseldorf It has been almost three weeks since the price of the cryptocurrency Bitcoin was last above the $20,000 mark. Nevertheless, analysts at Bank of America (BofA) have good news for crypto investors: They see signs that investors are once again seeing the cyber currency as a safe haven in turbulent market times.
BofA analysts Alkesh Shah and Andrew Moss attribute this to Bitcoin’s rising correlation to the Philadelphia Gold and Silver Index (XAU). It has risen to around 0.6 after being negative in April.
Correlation shows the relationship between the two asset classes. If it is positive, both tend to move in the same direction. At the maximum value of plus one, they are congruent. When the correlation is negative, the asset classes tend to move in opposite directions.
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