{"id":419249,"date":"2020-03-26T17:00:27","date_gmt":"2020-03-26T17:00:27","guid":{"rendered":"https:\/\/wncen.com\/?p=419249"},"modified":"2020-03-26T14:47:46","modified_gmt":"2020-03-26T14:47:46","slug":"becoming-a-safe-haven-a-year-of-bitcoin-correlation-with-gold","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/becoming-a-safe-haven-a-year-of-bitcoin-correlation-with-gold\/","title":{"rendered":"Becoming a Safe Haven: A Year of Bitcoin Correlation With Gold"},"content":{"rendered":"

The narrative surrounding Bitcoin<\/a> has often changed, starting as a peer-to-peer form of digital cash, to a store of value, and eventually, to a safe haven asset like gold.<\/span><\/p>\n

The concept that Bitcoin will someday behave similarly as the precious metal is becoming increasingly valid after more than a year of correlation alongside the original safe-haven asset. And with a potential economic collapse currently underway, that theory will be put to the ultimate test.<\/span><\/p>\n

Looking Back of a Year of the Cryptocurrency’s Correlation With Gold<\/h2>\n

Following Bitcoin<\/a>\u2019s highly publicized meteoric rise into the mainstream, the first-ever cryptocurrency spent all of 2018 locked in a downtrend and bear market, taking the price of the asset from an all-time high of $20,000 to as low as $3,000.<\/span><\/p>\n

In early 2019, however, the asset began to show signs a base was building, and the asset was being accumulated. Around the same time, a similar pattern took shape in gold.<\/span><\/p>\n

Related Reading | <\/strong>No Haven Safe: Silver, Gold and Other Precious Metals Nosedive Alongside Bitcoin<\/strong> <\/a><\/em><\/p>\n

All of this was taking place as tensions between the United States and China and an ongoing trade war picked up in severity.<\/span><\/p>\n

As the year went on, Bitcoin continued to follow gold\u2019s growth<\/a>, tracking alongside the precious metal and solidifying the safe haven narrative.<\/span><\/p>\n

And although in recent weeks as the coronavirus pandemic<\/a> began to spread and fears over an economic collapse began to turn into reality, gold has begun to slightly outpace Bitcoin is holding value during the recent selloff, the correlation continues.<\/span><\/p>\n

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$GOLD<\/a> and $BTC<\/a> charts. Very similar price movements this past year. Makes the safe haven argument more valid pic.twitter.com\/4yu0lU8ctU<\/a><\/p>\n

— IncomeSharks (@IncomeSharks) March 26, 2020<\/a><\/p><\/blockquote>\n