Wall Street Journal cryptocurrency expert Paul Vigna concluded that, amid falling global indices, Bitcoin became more closely correlated with gold.
So, based on data from the analytical company Excalibur Pro, Vigna notes that the correlation coefficient between gold and Bitcoin over the past five days was 0.84. This indicates a strong relationship between the prices of these two assets. Also, according to the expert, Bitcoin is increasingly being viewed as a kind of digital analogue of the precious metal.
Viña is sure that Bitcoin owes much of its popularity to the so-called quantitative easing (QE). This policy of central banks led to a "flooding of world markets with liquidity" and lower interest rates, and also prompted investors to invest in risky assets. At the same time, the expert is sure, “there is no riskier asset than the rebellious Bitcoin.”
As is known, the world indices Dow Jones, S & P 500 and Nasdaq have been falling rapidly in recent months. Against this background, Viña notes, the correlation coefficient between Bitcoin and the so-called “index of fear” VIX is 0.77, which is also a fairly high figure.
VIX (Volatility Index, Volatility Index) is an indicative tool calculated by the CBOE exchange on option prices, which reflect market expectations for future option volatility on the S & P 500 index.
Earlier, the president of Equity Armor Investments, Brian Statland, expressed the opinion that with the help of Bitcoin and VIX, you can effectively hedge risks in traditional financial markets.
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