Crypto Long & Short: Bitcoin’s Relationship With Gold Is More Complicated Tha...

Bitcoin has been called 'digital gold', but does this mean the two markets behave similarly? This relationship has been top of mind for industry observers for some time, as media coverage has often championed the idea bitcoin is a new 'safe haven' asset. But while some market observers have claimed there is a correlation between bitcoin and gold, members of the digital currency trading community disagree. Further, some have collected data they believe shows this relationship is speculative at best. Though bitcoin and gold have frequently displayed a notable correlation during times of....

“I had to change my thought process to understand that bitcoin is no enemy of gold and silver,” says monetary expert Andy Hoffman, who writes for the precious metals website Miles Franklin. “When bitcoin hit price parity with gold in 2013, I was angry. I knew nothing about it. I assumed it was like the Federal Reserve. That, instead of 21 million coins,....

A well-known American economist suggested a relationship between gold, NASDAQ and Bitcoin, saying that a decline in NASDAQ usually leads to a decrease in Bitcoin.  Peter Schiff explained in a post the correlation between the state of Bitcoin and the market situation of NASDAQ, adding that there is a negative relationship between gold and NASDAQ. […]

BTC used to be an uncorrelated asset, but that’s no longer the case. What can gold and stocks suggest about the crypto markets? Bitcoin (BTC) is an uncorrelated asset, or so the narrative used to go. For much of Bitcoin’s lifetime, it existed as something of value to a very small group of people. Now, awareness and demand are accelerating rapidly. So, what does this mean for the status of BTC as a supposedly uncorrelated asset? That Bitcoin was an uncorrelated asset isn’t just conjecture — the numbers back it up. According to data compiled by VanEck in early 2021, there was almost no....

Here are three reasons why PlanB’s prediction isn’t accurate and why we can’t expect Bitcoin’s price to increase 10x after each halving. In the last couple of years, the stock-to-flow model proposed by PlanB has become very famous. A quantitative study published on the site planbtc.com shows the model and the prediction that Bitcoin (BTC) could reach the capitalization of $100 trillion. Obviously, the crypto industry, including myself, was fascinated by the logic of the model and even more so by the idea that it could reach and exceed $100,000 as early as 2021.In fact, the stock-to-flow....