Bitcoin’s recent price performance has surprised many as it is trading more like a tech stock than the characteristic digital gold. Per available information, Bitcoins price now is at par with stock prices reported on Nasdaq, an action that challenges the traditional market trend for crypto.
The index traces Bitcoin prices from as far back as July 2020 and records a notable correlation with current share prices.
Correlation Statistics Between Bitcoin and Nasdaq
Correlation measurements are done on a scale of -1:1. This means that the prices are moving towards opposite sides with the positive 1 showing that they are in perfect synchrony. An interpretation of the results with a 30-day correlation shows that the creases are due to daily ripples through a longer-time horizon.
According to research by Arcane, there is a 30-day correlation between BTC price and Nasdaq, giving a 0.70 correlation. Despite Bitcoin prices now steadily correlating with share prices like those of tech stocks like Google, Tesla and others, the flagship crypto has shifted to a negative correlation with the precious metal gold.
Statistics indicate a -0.45 for Bitcoin, which is almost nearing the cryptocurrency’s ultimate low. Data tracing back to August 2020 shows an ATH for Bitcoin’s correlation with gold, but there has been a historical fluctuation between the two valuables moving between positive and negative indexes, which only goes to provide a little resource for market predictors.
Comparing Gold and Bitcoins Price Now
Taking data by Monex into consideration, the price of gold was $1,805 at the start of 2022, before scaling to the current $1,952. The same data indicates a recent stagnation in the recent month.
On the other hand, CoinMarketCap shows that Bitcoin has moved from $46,730 to $41,326 between the same time frame. This means that Bitcoin’s value has declined sharply if it is compared to its physical counterpart, gold.
This, in some way, gives some measure of credence to skeptics who have mostly argued that Bitcoin is not good and therefore can not act as a hedge against rising inflation.
A recent Reuters report also showed that digital assets that are pegged to the precious metal have actually been outperforming Bitcoin and other cryptocurrencies.
Per the report, PAXG has risen by over 7% this year, while its XAUT has increased by over 8% within the same period. On the other hand, Bitcoin and Ethereum have shed over 5% of their value within the same period.
Inflation in the Present day
One of the key players in present day’s markets is inflation, and the latest Consumer Price Index in the United States testifies to that effect.
Per the Bureau of Labor Statistics, inflation is at 8.5% per annum in the US which is by far the highest rate of inflation recorded since 1980.
Many economic analysts have argued that the rising inflation could go on to negatively affect the average American and there has urged them to invest in physical things like real estate, and even digital assets like Bitcoin.
