Bitcoin’s Changing Correlations May Mean It’s Becoming a Haven Again, BofA Says
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Bitcoin’s movements in relation to other assets may indicate that investors see it becoming a haven again.
Bitcoin's movements in relation to other assets may indicate that investors see it becoming a haven again, after a stretch where it's traded basically as a risk asset, according to Bank of America Corp.The largest cryptocurrency has a 40-day correlation with gold of about 0.50, up from around zero in mid-August. While the correlations are higher with the S&P 500, at 0.69, and Nasdaq 100 at 0.72, they've flattened out and are below record levels from a few months ago. BofA digital strategists Alkesh Shah and Andrew Moss see that as a sign that things could be changing. “A decelerating positive correlation with SPX/QQQ and a rapidly rising correlation with XAU indicate t...