According to digital assets experts at Bank of America, investors may once again see bitcoin as a “relative safe haven.”
According to Bank of America research, Bitcoin’s evolving connection with conventional markets suggests that investors may once again see the cryptocurrency as a safe-haven asset.
Since mid-August, the crypto market leader’s correlation with gold has increased from 0 to 0.5, according to Bloomberg, citing BoA digital assets analysts Alkesh Shah and Andrew Moss.
Its correlation with key indices has likewise levelled down below record highs, with the S&P 500 recording 0.69 and the Nasdaq reaching 0.72.
Amid macroeconomic instability, bitcoin may be seen as a “relative safe haven” by investors. Moss and Shah noted, “a market bottom has yet to be determined.” The new data suggests a deviation from the cryptocurrency’s typical correlation with equity markets.
According to Coinbase statistics, Bitcoin was trading at approximately $19,200 at the time of writing, an increase of around 1.2% in the past 24 hours. Still the leading cryptocurrency by market capitalization, it is now 72.1% below its all-time high of $68,787.