Cryptocurrency expert by the Wall Street Journal Paul Vigna came to the conclusion that against the background of falling global indices bitcoin has become more closely correlated with gold.
So, based on the data of the analytical company Excalibur Pro, Vigna notes that the correlation coefficient between gold and bitcoin, the last five days was 0.84. This indicates a strong correlation between prices of these two assets. Also, according to experts, bitcoin is increasingly seen as a digital analogue of the precious metal.
Viña sure that his popular bitcoin owes a lot of so-called quantitative softening (Quantitative easing, QE). This policy of Central banks has led to a “flooding global markets with liquidity” and low interest rates and prompted investors to invest in risky assets. At the same time, the expert believes, is “no more risky asset than the rebel bitcoin”.
As you know, global indices Dow Jones S&P 500 and Nasdaq in recent months, falling rapidly. Against this background, notes the Vina, the correlation coefficient between bitcoin and the so-called “fear index” VIX is 0.77, which is also quite high.
VIX (Volatility Index, volatility index) is indicative of the tool calculated by the exchange on the CBOE option prices, which reflect market expectations on the future volatility of options on the S&P 500 index.
We will remind, earlier the President of Equity Armor Investments Brian Stutland expressed the opinion that using bitcoins and VIX can effectively hedge risks in the traditional financial markets.
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