Bitcoin Having Almost No Correlation to Gold Since Late 2020

Compared to the $1 trillion crypto asset’s 85% YTD gains, the bullion is down -11.19% in 2021 so far. As for month-to-date, gold prices are again down 3%, while BTC is up nearly 20%.

It’s been nearly six months that the correlation between Bitcoin and gold has been on a downtrend. Currently, this correlation is near 0, which points to no correlation at all.

This made sense given that ever since hitting a new all-time high above $2,000, the prices of precious metal have been going down, hitting a nine-month low on Monday to $1,675 before making some recovery to $1,700 in tandem with all the other assets.

Based on BTC/GOLD 60d Spearman Correlation, “Bitcoin has had almost basically no correlation to Gold since late 2020,” noted Coin Metrics.

Compared to the $1 trillion crypto asset’s 85% YTD gains, the bullion is down -11.19% in 2021 so far. Even month-to-date, the spot gold prices are down 3%, while BTC is up nearly 20%.

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Source: CoinMetrics

Stock markets made a recovery on Monday on the back of a $1.9 trillion stimulus plan winning US senate approval on Saturday, only to end up lower. Tech-heavy Nasdaq is also selling off, now down 10.5% from Feb. 12 high of 14,095.

U.S. Treasury Secretary Janet Yellen said the package would fuel a “very strong” U.S. recovery, and as spending increases, she does not expect the economy to run too hot either.

However, investors are back to bracing themselves for another bout of sell-off in US Treasuries as a trio of large government debt auctions this week. “Investors will remain on pins and needles until the auctions are behind us,” said Gennadiy Goldberg, a rates strategist at TD Securities.

This could present a danger for all risky assets, including Bitcoin, as we have seen over the last couple of weeks.

Rising treasury yields are helping the US dollar strengthen, which fell to nearly 89 level earlier this year, a level not seen since April 2018. But since late February, the greenback has been climbing, going to 92.5 today before sliding to 92.

This is why the stock market and Bitcoin have been enjoying the gains finally, with BTC going above $54,000.

But in the near term, the macro presents a challenge in the form of rising yields and dollars. Additionally, March hasn’t been a bullish month for Bitcoin historically, which combined with 100k Bitcoin options outstanding for the March expiry points to continued volatility.

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Author: AnTy

OneGold Launches Mobile App WIth BitPay, Allowing Users To Buy Gold With Crypto

Bullion Company, OneGold Inc. introduces crypto payments on its mobile application after a successful run so far in providing crypto payment gateways to purchase gold and silver. The precious metal marketplace announced they would be accepting crypto payments a year ago, and have since accepted over $50 million in Bitcoin-based payments for gold, which represents 10% of their total precious metal sales.

The long-standing feud between Bitcoin maximalists and Gold bugs is slowly easing out as both camps realize the vast potential the assets held as a store of value. The gateway provided by OneGold allows users to exchange gold and silver for a variety of crypto options including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Paxos Standard (PAX), Gemini USD (GUSD) and Circle’s USD Coin (USDC).

The Apmex and Sprott owned bullion marketplace integrate BitPay, a crypto-to-fiat gateway platform, to allow users to directly purchase gold and silver using digital assets. The platform further incentivizes the users to use crypto, offering 2% discounts on each purchase. According to the CEO of OneGold, Kenneth Lewis, gold and crypto are necessary for every portfolio to diversify risk across various assets. Speaking on the latest integration with BitPay, Lewis said,

“Cryptocurrency holders are a natural fit as precious metals investors and can utilize OneGold to balance their investment portfolio. Using BitPay, cryptocurrency holders can quickly buy gold or silver at institutional pricing, save 2%, and create a nice balanced mix of gold, silver, and cryptocurrencies.”

The company is stretching out its services further by targeting mobile-based users, mostly millennials, in launching both their Android and iOS apps on Jan. 13. This comes on the heels of the $50 million USD in transactions completed using cryptocurrencies on the online bullion marketplace over the past year.

The new mobile-based application is set to improve the overall investment vehicles of both gold and cryptocurrencies offering investors an “ideal source for passive investment”. The official statement on the launch of the mobile application states,

“Onegold is an ideal resource for people who would like to passively save weekly, monthly or quarterly and dollar-cost average the price of gold and silver over time.”

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Author: Lujan Odera