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Grayscale study shows correlation between Bitcoin and gold, with BTC highlighted as a “safe haven” for financial reserves

May 5, 2020

In a new report from Grayscale entitled “Quantitative adjustment of Bitcoin against quantitative easing by the central bank“the company claims The current macroeconomic environment raises doubts about the ability of the current financial system to cope with the development of the economic crisis caused by the progression of the corona virus and especially for the rampant printing of money and proposes Bitcoin as a “safe haven” to preserve the value of money.

“Given the continued pressure from money, stimulus packages, and the Federal Reserve’s determination to continue using its powers until the coronavirus pandemic is no longer a threat, investors need to assess the sustainability of traditional assets,” the report said.

To this end, grayscale analysts point this out There are four instruments for investors to stabilize their portfolio, but according to the company, Bitcoin is by far the leader in all instruments.

“Fiat currencies – committed to making a lot of money through quantitative easing. Investors could continue to switch to the strong US dollar, the global reserve currency, which could destabilize global assets.

Government bonds – tied by quantitative easing, high interest rates, negative yields and reduced purchasing power

Gold – counter the trend towards digitization and avoid technological progress that supports portability and accessibility to demand

Bitcoin – is more on demand than debt and remains outside the reach and influence of central banks. S.The scarcity makes it an attractive instrument for the diversification of investments due to its low correlation with other assets“said the company.

Grayscale also highlights that the relationship between Bitcoin and gold has narrowed by 2019 and the first quarter of 2020, with global tensions caused by the relationship between the United States. and China, the escalation of Iran and market fears with COVID-19.

“”The correlation between Bitcoin and gold is at an all-time high, suggesting that Bitcoin may be more of a safe haven“he said.

Grayscale study shows correlation between Bitcoin and gold, with BTC highlighted as a “safe haven” for financial reservesGrayscale study shows correlation between Bitcoin and gold, with BTC highlighted as a “safe haven” for financial reserves

The report concludes that after the 2008 financial crisis, BTC may have a gold performance due to its solid fundamentals such as strong bitcoin hash rates, high network activity, and signs of long-term gold accumulation.

“Although the price of gold initially fell in response to falling asset prices and widespread bankruptcies, it rose more than 180% from $ 682 in October 2008 to $ 1,912 in September 2011. Likewise, after the price initially fell dramatically, bitcoin rose from the 12th March by 96%, “concludes the report.

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