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Bitcoin's (BTC) correlation with US stocks has reached a new historical record


Bitcoin's correlation to U.S. stocks has reached its highest level ever, according to BitMEX Research.

The coronavirus-induced liquidity crisis has shown that cryptocurrencies may not be the most reliable hedge for investors who want to protect their wealth during the severe pandemic.

Bitcoin used to act as a safe haven asset as it moved alongside gold in the geopolitical context involving events such as the Cypriot financial crisis (2012-2013) and Donald Trump's surprise victory (November 2016).

However, when BTC entered the mainstream in 2017, it began to show the characteristics of a risky asset, so it became somewhat ambidextrous.

During the chaos of the coronavirus, in which, in John Bollinger's words, all correlations tend to zero, BTC simply became a high beta proxy for stocks.

At newsletter today, Joe Weisenthal from Bloomberg notes that the demand for gold is increasing right now because investors see it as the only viable safe haven. Along with disrupting the gold supply chain, this presents a bull box perfect for shiny metal.

This goes against anti-gold Bitcoiners who believe that their digital version could finally replace bulky rocks.

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