Bitcoin is on track for its third consecutive month of positive gains as investors continue to see it as a hedge against the recent bank failures.<\/p>\n
Whats more interesting is that its no longer trading in lockstep with the S&P 500. In fact, data from Coin Metrics suggests the correlation between Bitcoin and equities is now the weakest since September 2021.<\/p>\n
That makes sense, of course, considering its valuation is not coupled with earnings growth as in the case of equities. According to Alex Thorn of Galaxy Digital:<\/p>\n
The correlation data shows that, at least recently, Bitcoin has indeed performed more like a safe-haven asset than a risk asset.<\/p>\n
Bitcoin is currently up about 70% for the year.<\/p>\n
On the flip side, the banking crisis has helped Bitcoin reestablished the correlation it once shared with gold. That also signals its now regaining the status as a risk-off asset. Thorn added:<\/p>\n
Given the nature of current crisis in which fractional reserve banking systems core limitations are tested Bitcoins fundamental characteristics genuinely distinguish and offer a safe port in a storm.<\/p>\n
Remember that the worlds largest cryptocurrency had a difficult 2022 partly because of the aggressive rate hikes. Now that were near the end of that cycle, though, its likely that Bitcoin will have a clearer path ahead for upside.<\/p>\n
Last week, Fed Chair Powell signalled only one more rate hikes this year.<\/p>\n
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Is Bitcoin regaining its status as a safe-haven asset? - CoinJournal<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Bitcoin is on track for its third consecutive month of positive gains as investors continue to see it as a hedge against the recent bank failures. Whats more interesting is that its no longer trading in lockstep with the S&P 500 Continue reading