Black Thursday has triggered two new traits in Bitcoin’s relationship with different cryptocurrencies and gold.Traditionally, cryptocurrencies hav
Black Thursday has triggered two new traits in Bitcoin’s relationship with different cryptocurrencies and gold.
Traditionally, cryptocurrencies have been extremely correlated with each other, particularly the highest ones. The correlation between cryptocurrencies and gold has been historically weak.
Supply: Kaiko
Two new traits emerge
Since Black Thursday, two new traits have emerged: the correlation between Bitcoin (BTC) and the opposite 9 cryptocurrencies has reached unprecedented ranges, whereas the correlation between Bitcoin and gold has turned adverse. Curiously, even the correlation between Bitcoin and the Tether (USDT) stablecoin has gained in power.
Supply: Coinmetrics
Moreover, inspecting the most recent ten-day interval, we observe that Bitcoin’s adverse correlation with gold has grown additional in power and has turned adverse with NASDAQ and S&P 500.
Supply: Kaiko
Trying forward
The reasoning behind this enhance in correlation between Bitcoin and different prime currencies may very well be as a result of normal anxiousness and uncertainty introduced on by the pandemic and the financial disaster that adopted. On the subject of the crypto market, there’s extra uncertainty in view of the upcoming halving of the Bitcoin block reward and its impact on the Bitcoin worth.
It appears possible that we’ll not see any main adjustments within the two new traits that emerged out of the Black Thursday till very near the halving — and even previous the halving — barring main unforeseeable occasions.