The cryptocurrency has been hovering around the $20,000 mark for months.
(Photo: Reuters)
Crypto advocates are just getting the upper hand again. Not because the most important digital currency Bitcoin would rise – it has basically been moving sideways for four months after falling from almost $69,000 to $20,000. Rather, they are hopeful that the Bitcoin price tends to move parallel to gold.
This strengthens a well-known argument: Bitcoin should be a safe haven on the financial market for investors, offering them protection in stormy times. Gold is a classic example here because it retains its intrinsic value even when the general price level rises.
With that in mind, it sounds great when both asset classes tend to move in the same direction. But it is not. The correlation between gold and bitcoin is rising because both have been weak over the past few months.
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
Continue
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
Continue