Amid the economic uncertainty affecting a myriad of countries worldwide, Bank of America Securities market strategists explained in a note this week that the leading crypto asset bitcoin has been correlated with the well known precious metal gold. Bank of America analysts Alkesh Shah and Andrew Moss noted “that investors may view bitcoin as a relative safe haven as macro uncertainty continues.”
Market strategists from Bank of America’s securities division, Alkesh Shah and Andrew Moss, detailed this week that bitcoin and gold have been highly correlated in recent times. The news follows the recent report published by the crypto data provider Kaiko, which says bitcoin has been less volatile than the Nasdaq and S&P 500 indices. According to the Bank of America strategists, bitcoin’s (BTC) price fluctuations, in terms of other global assets, have caused investors to think BTC is a safe-haven asset.
“A decelerating positive correlation with SPX/QQQ and a rapidly rising correlation with XAU indicate that investors may view bitcoin as a relative safe haven as macro uncertainty continues and a market bottom remains to be seen,” Bank of America’s securities division analysts wrote.
On Monday, October 24, both bitcoin (BTC) and gold prices have been range bound, and have been less volatile in comparison to equity markets. BTC is trading for just above $19K per unit, while an ounce of .999 fine gold is exchanging hands for 1,646.70 nominal U.S. dollars. Bank of America’s Shah and Moss have been monitoring the 40-day correlation with gold, which is around 0.50 this week. The 0.50 rating is a lot closer and shows a stronger correlation to the precious metal than the zero rating the leading crypto asset BTC recorded in August.
The move comes at a time when macro uncertainty has heightened, and analysts have warned that U.S. Federal Reserve rate hikes could cause a U.S. Treasuries liquidity crisis. Market observers expect an aggressive rate hike next month, but strategists also believe the Fed will pivot by December. Both gold and BTC have fallen a great deal since the two asset’s all-time price highs. Gold for instance tapped a lifetime price high against the U.S. dollar on March 8, 2022, when it reached $2,074 per ounce.
Gold has lost 20.49% against the U.S. dollar since the all-time high 230 days ago. The crypto asset bitcoin (BTC) has shed 72% against the greenback during the last year, after tapping $69,044 per unit on November 10, 2021. Gold today has an overall market capitalization of around $10.895 trillion, while BTC’s market capitalization is around $369 billion.
What do you think about Bank of America’s Shah and Moss explaining that gold and bitcoin have been correlated during the last 40 days? Do you think investors perceive bitcoin as a safe-haven amid today’s macro uncertainty? Let us know your thoughts about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons, editorial photo credit: Bloomberg
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Today's Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits
As the crypto economy hovers just under $2 trillion in value, application-specific integrated circuit (ASIC) mining devices are making decent profits. While ASIC miners can still mine ethereum, a 1.5 gigahash (GH/s) Ethash mining device can rake in $51.58 per ... read more.
Amid the economic uncertainty affecting a myriad of countries worldwide, Bank of America Securities market strategists explained in a note this week that the leading crypto asset bitcoin has been correlated with the well known precious metal gold. Bank of America analysts Alkesh Shah and Andrew Moss noted “that investors may view bitcoin as a relative safe haven as macro uncertainty continues.”
Market strategists from Bank of America’s securities division, Alkesh Shah and Andrew Moss, detailed this week that bitcoin and gold have been highly correlated in recent times. The news follows the recent report published by the crypto data provider Kaiko, which says bitcoin has been less volatile than the Nasdaq and S&P 500 indices. According to the Bank of America strategists, bitcoin’s (BTC) price fluctuations, in terms of other global assets, have caused investors to think BTC is a safe-haven asset.
“A decelerating positive correlation with SPX/QQQ and a rapidly rising correlation with XAU indicate that investors may view bitcoin as a relative safe haven as macro uncertainty continues and a market bottom remains to be seen,” Bank of America’s securities division analysts wrote.
On Monday, October 24, both bitcoin (BTC) and gold prices have been range bound, and have been less volatile in comparison to equity markets. BTC is trading for just above $19K per unit, while an ounce of .999 fine gold is exchanging hands for 1,646.70 nominal U.S. dollars. Bank of America’s Shah and Moss have been monitoring the 40-day correlation with gold, which is around 0.50 this week. The 0.50 rating is a lot closer and shows a stronger correlation to the precious metal than the zero rating the leading crypto asset BTC recorded in August.
The move comes at a time when macro uncertainty has heightened, and analysts have warned that U.S. Federal Reserve rate hikes could cause a U.S. Treasuries liquidity crisis. Market observers expect an aggressive rate hike next month, but strategists also believe the Fed will pivot by December. Both gold and BTC have fallen a great deal since the two asset’s all-time price highs. Gold for instance tapped a lifetime price high against the U.S. dollar on March 8, 2022, when it reached $2,074 per ounce.
Gold has lost 20.49% against the U.S. dollar since the all-time high 230 days ago. The crypto asset bitcoin (BTC) has shed 72% against the greenback during the last year, after tapping $69,044 per unit on November 10, 2021. Gold today has an overall market capitalization of around $10.895 trillion, while BTC’s market capitalization is around $369 billion.
What do you think about Bank of America’s Shah and Moss explaining that gold and bitcoin have been correlated during the last 40 days? Do you think investors perceive bitcoin as a safe-haven amid today’s macro uncertainty? Let us know your thoughts about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons, editorial photo credit: Bloomberg
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Today's Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits
As the crypto economy hovers just under $2 trillion in value, application-specific integrated circuit (ASIC) mining devices are making decent profits. While ASIC miners can still mine ethereum, a 1.5 gigahash (GH/s) Ethash mining device can rake in $51.58 per ... read more.
A crypto rewards platform called Freeway.io has notified users that it decided to reallocate capital in order to “manage exposure to future market fluctuations and volatility.” In doing so, users are unable to withdraw funds from the platform, and the Freeway team explained that amid the reallocation process, the team could not comment further.
The crypto community is dealing with another rewards platform that has decided to halt withdrawals amid a decision to reallocate funds. On October 23, the crypto rewards company Freeway.io, formally called Aubit, published a notice to customers that claims foreign exchange (FX) and crypto markets were experiencing “unprecedented volatility.” In order to protect itself from wild fluctuations, it decided to reallocate the company’s funds in order to ensure “the long term sustainability and profitability of the Freeway Ecosystem.”
The Freeway crypto rewards platform promised users up to 40% annual percentage yield (APY) on “Supercharger” accounts. Interestingly, just before the rewards platform published its notice to customers on October 23, the day before, the crypto whistleblower known as “Fatman” warned clients to withdraw from the rewards platform immediately.
“If anyone has funds in crypto yield platform Freeway, I would suggest withdrawing right away,” Fatman tweeted on October 22. The crypto whistleblower further added:
I believe they are operating a Ponzi scheme. In my opinion, it’s likely that Freeway will collapse within the next few months and that all depositors will lose everything.
The Freeway team never explained when the platform will be fully operational again, and it further noted that “while we complete this process, we cannot comment further beyond this statement.” According to Freeway’s web portal, the APY funds paid out to customers derive from “various arbitrage [and] trading investment spreads.” After Fatman’s tweet, a Freeway supporter dubbed “Westcoast Life” wrote that he spent over 12 months verifying the legitimacy of the application.
“Not a ponzi, I’ve spent over a year verifying this. Nice try tho Fat guy,” Westcoast Life wrote to Fatman. The whistleblower then said he would bet the individual’s “entire Freeway account that it is a Ponzi.” Westcoast Life decided to take the bet. Furthermore, the Freeway supporter blocked Fatman following the announcement from Freeway, after an individual said that the person’s tweet “aged well.”
After the announcement stemming from the Freeway.io team, the platform’s native token freeway (FWT) plummeted more than 72% against the U.S. dollar. The crypto asset is now down 95.3% from the all-time high recorded on May 16, 2021. Meanwhile, the individual Westcoast Life seems to still trust that the Freeway.io system will be ok. Bitcoin.com News emailed the Freeway crypto rewards company and our newsdesk has yet to receive a response.*
16 hours ago, he wrote: “We trust you guys – please keep us updated.” And when someone criticized the “not a Ponzi” statement 24 hours later, Westcoast Life replied: “We’ll see.” In response to the comment. Another individual scoffed at Westcoast Life’s comment, and said: “We SAW you get rugged less than 24 hours after gloating.”
*This is a developing story and Bitcoin.com News will update our readers as soon as more information is made public.
What do you think about Freeway.io halting withdrawals and citing market volatility? Let us know your thoughts about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament
A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.
Source From : News