Bitcoin is regularly referred to as new gold, digital gold or gold 2.0. If Bitcoin is indeed gold-like the correlation of Bitcoin and gold returns should be positive. We estimate the correlation of the two assets across time, across different return frequencies and across quantiles and find a...
The difference between the assets upholds their lack of correlation. Gold is a physical asset, which means its use and properties are much more flexible than Bitcoin which is purely a digital asset. Gold has inherent value, it can be used in various industries and has cultural value as well....
This study investigates the role of gold, Bitcoin, and gold-backed cryptocurrencies in diversifying portfolios centered around AI companies. By analyzing the dynamic correlations and portfolio implications of seven leading AI firms alongside Bitcoin, gold, DGX, and PAXG from April 30, 2021, to ...
inflation volatility, credit risk, the USD trade weighted exchange rate (Ghosh et al.2004; Gorton and Rouwenhorst2006; Kolluri1981), besides a considerable parallel relationship between gold and equity returns (Boako et al.2019
So far, bitcoin’s biggest correlation is with its own supply cycle. Every four years, the number of new coins generated by the algorithm every 10 minutes gets cut in half, and there tends to be a “post-halving” bull run. Here’s the bitcoin price in log form, with halving points ...
from the equities market in recent weeks, thanks in part to the popularity of bitcoin ETFs, which has led to the institutionalization of the asset. Bitcoin's correlation with the S&P 500 has climbed in the past week, while its correlation with gold has dropped sharply since the end of ...
This paper compares gold and bitcoin from a mining perspective, contributing to a large literature that focuses on market data including prices, returns, volatility and correlation but generally does not entertain a mining perspective. The qualitative comparison illustrates many similarities but also many...
It’s difficult to make this case, given the low correlation between the two assets. Consider the correlation coefficient between the monthly returns of gold and bitcoin. (A coefficient of 1.0 would mean that the two are completely correlated with each other, while a coefficient of minus 1.0 ...
Their volatile rise in market capitalization, growing correlation with other financial assets, and adoption in many emerging markets (Bains et al. 2021) have changed perceptions about the risks of crypto assets and the need for appropriate policies to address them. Policymakers around the world have...
"This correlation shows that bitcoin is firmly behaving like a risk asset at the moment — not the safe haven it was touted to be a few years ago." In fact, gold has actually been outperforming bitcoin lately. Spot rates for the precious metal reached their highest levels since June 1 on...