Bitcoin performs better than gold

Gold and Bitcoin pass the baton in the safe-haven asset relay in the week when the cryptocurrency queen benefits from a rebound.

Bitcoin could prove to be a better safe-haven asset than gold again

In a bear market period, one of the moves you can make to protect your capital is certainly to place part of your portfolio in one or more safe-haven assets. That’s more important if, as this year, inflation is skyrocketing and the countermeasures taken by central banks are not yet sipping the desired effects. 

The aggressive monetary policy of the Fed, ECB, and other central banks to the tune of rate hikes of 50 to 75 basis points is an important measure, but it still does not seem enough, and that is how protecting savings becomes increasingly important. 

The ultimate safe-haven asset is gold, which despite being expected to do more, has done its part by almost hitting $1,900. However, it seems to have run into a sound setback. 

In the same week, Bitcoin benefited from a substantial rebound of 13%, bringing it around the $21,000 mark.

This combination of events caused BTC to outperform gold and ideally take the safe-haven asset baton from the yellow metal. 

Since its inception, Bitcoin’s limited quantity, its behavior over time, and its characteristics have juxtaposed it with gold in its role as a durable asset that increases its value in uncertain times.

At CNBC’s microphones, Galaxy Digital CEO Mike Novogratz said:

“We’ve had tremendous deleveraging and I think most of that reduction is now out of the system.”

The month of June showed against all odds how the two assets, digital currency and the precious metal, are increasingly closely correlated, unlike what used to be the case. 

The correlation between the two assets is getting higher and higher

Despite a closer correlation between the two safe-haven assets, the last week marked the coronation of Bitcoin at the expense of gold. 

The Kraken exchange, in its monthly report for last June, reported: 

“The increase in correlation signals a broader trend of correlations across all rising asset classes amid significant macroeconomic uncertainty.”

According to many analysts, part of Bitcoin’s weekly success also comes from the assistance made by Binance. 

The exchange recently announced that every trade on the platform is free, resulting in more transacted and better volumes that have helped BTC’s performance. 

In essence, the crypto with the highest capitalization rose from about $19,000 to $21,000 on Friday, registering a 13% jump that was worth overtaking in investor sentiment. 

In the same period, gold fell from $1809 to just over $1,700 ($1747). 

According to some analysts, BTC’s performance is due to the fact that deleveraging has ended, and the cryptocurrency world may know a better trend from here on out. 

If this is the case, the gap between the two safe-haven assets will likely grow, and the digital currency will continue to outperform, much to the chagrin of cryptocurrency detractors.