Bitcoin vs Gold: Where are Institutions Putting Their Safe-Haven Money? | Finance Magnates

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Analysts have long tried to imply a strong connection between Bitcoin and gold as safe-haven investments in times of trouble.In theory, this works, as both the crypto asset and the precious commodity are used as a macro hedge against inflation, and the devaluation of fiat currency and traditional equities in tricky markets.Join your industry leaders at the Finance Magnates Virtual Summit 2020: Register and vote for the FMLS awardsBut the data is often unclear and as a whole, shows shifting sands in terms of direct correlation.Take Kraken’s June 2020 report, for example. The crypto exchange — which has been celebrating its newly-found status as the first of its kind to win a US banking license — noted that Bitcoin’s connection to the price of Maxim Bederovgold had weakened as volatility and trading volumes declined in the early part of the year.Indeed, the crypto exchange noted on 8 September that Bitcoin’s rally to an intra-month high of $12,480 coincided with NASDAQ tech giant Microstrategy buying $250m of the cryptocurrency.Two weeks later, the mobile app firm doubled down, purchasing a further $175m of Bitcoin, taking its total holdings to 38,250 BTC. Founder Michael Saylor tweeted: “On September 14, 2020, MicroStrategy completed its acquisition …

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