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As Coronavirus Impacts Markets, Gold And Bitcoin Are Correlating

By Jamie Green – Cryptocurrency Specialist

The sudden outbreak of coronavirus has resulted in the comparison of two very different assets, as reported by CryptoPotato. Users have always compared Gold to Bitcoin but the crisis so far show they correlate very closely in the short-term.

Recently, a report by VanEck Global fund manager showed that within a short span of time, gold and Bitcoin are correlating progressively more & more. Many similarities can be found between the two, including scarcity & a finite supply, as well as other factors. Gold has been considered the main asset for people for a long time and the recent correlation between Bitcoin and Gold suggests the digital asset is approaching a “safe-haven status”.

Many buy gold securely in the same way people buy Bitcoin from a trusted Bitcoin broker, whether as an investment or just as a security. However, users rarely hold the physical commodity when trading, but it can be much easier to hold the digital assets.

The report goes on to reveals that the Bitcoin ETF, a product offered by VanEck, illustrates a considerable reduction in volatility for 60 percent equity / 40 percent bond blended portfolios.

Does it affect Bitcoin anyway?

Bitcoin is believed to be one of the most secure assets in the world and is often touted by those that buy and sell cryptocurrency, especially among those who buy and sell Bitcoin.  Undoubtedly, gold is still dominant over all the stock markets, commodities and cryptocurrencies. March recently displayed a loss of 40 percent during its sell-off for Bitcoin.

In contrast to that, gold prices usually increase or become stagnant rather than reducing to such a huge percent. Therefore the cryptocurrency experts suggest Bitcoin will stay uncorrelated with assets such as currency or commodities.

Head on over to our platform to Buy and Sell Bitcoin UK from your local cryptocurrency broker.

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