Analyst: Bitcoin is not digital Gold
Bitcoin has been compared in the past continually with Gold, although many of them push the narrative that Bitcoin is a digital Version of Gold. This narrative was fueled further after the largest crypto currency was reflected by market capitalisation, there is a correlation with Gold, after the Coronvirus pandemic put the world markets in fear and terror.
The stock market crash of 12. March was divided from the BTC-market, the latter fell to a since February 2019 level not seen. Shortly after the crash, recovered in Bitcoin, and many traders have drawn a Parallel between the Similarity of the Performance of Bitcoin and Gold during the financial crisis of 2008. According to the Elias Simos, senior research analyst at Decentral Park, is used for the BTC and Gold correlation with the global market, however, “fairly indiscriminately”, the Analyst who provides the narrative in question. The researchers drew a timeline of the effects of Coronavirus on the global financial world and noted that on 17. February, as China announced 20,000 new cases, fear on the market, include, the risk-Asset correlation has decreased to 1, he added:
17. Feb is the point at which we are in a Post-risk-parity-domain occurred. This means, among other things, that Cross-Asset strategies, the before the 17. February work, now no longer work, and probably also in the near future will not work.
After the event, on 17. February, the correlation between the indices of risk-asset classes was high, and the Spreads between them offered opportunities for Arbitrage. The risk-asset class included in the S&P 500 Index and BTC, and without calculating the mean Reversion, one could not ask for decoupling, said Simos. The Performance of Bitcoin can be attributed to a more attractive, relative value, characterized by the fact that the largest crypto currency was oversold in comparison to the S&P 500 Index, Simos.
This does not mean, however, that the asset could be used as a digital Gold referred to, argued the Analyst. According to Simos, the relative yields of BTC have to outdo in this period, the S&P 500 Index, in order to confirm the decoupling of Bitcoin and its evolution to the “digital Gold”. There is a reverse correlation must be visible in the BTC falters or is rising sharply, while the S&P rises 500 Index or strongly falls. This could give Bitcoin in the “throne” as a digital Gold, Simos, but this would also mean that crypto-Assets should be considered in the galaxy of the asset classes alone, said the researchers. Simos warned however that the events could play on the traditional financial market a major role, if in the coming weeks, again a bad news break.
Nevertheless, there are positive signals from the crypto-market, the talk of decoupling, and the Gold Narrative. According to the Token-Analyst addresses with more than 1 Bitcoin, there is a measure on 12. March a massive slump suffered a strong recovery. On the basis of the mining pools Antpool of the BTC balance dropped from 693 addresses with more than 1 Bitcoin on a 404, because the addresses were either sold or in stock exchanges and transferred to the estate to replace the end of crypto-currency. The CEO of Token, Analyst, Jai Prasad, commented:
The retail sector has seen the recent price decline as an opportunity to buy! Wallets with >1 $BTC will continue to take every day on ATH’s!
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