Bitcoin’s correlation with gold hints at return to haven status, BoA strategists say

Bitcoin’s shifting relationship with traditional markets hints that investors may again be thinking of it as a haven asset, according to research by the Bank of America.

The crypto market heavyweight has seen its correlation with gold increase from zero to 0.5 since mid-August, Bloomberg first reported, citing BoA digital assets strategists Alkesh Shah and Andrew Moss.

Its correlation with major indexes has also flattened out below record highs, with the S&P 500 registering 0.69 and the Nasdaq hitting 0.72.

Investors may be viewing bitcoin as a «relative safe haven» amid macro uncertainty, Moss and Shah wrote, adding that «a market bottom remains to be seen.»

The new data indicates a change from the cryptocurrency’s tendency to move in lockstep with equities markets.

Bitcoin was trading around the $19,200 mark at the time of writing, up about 1.2% in the last 24 hours, according to Coinbase data. Still the number one cryptocurrency by market cap, it is now sitting at 72.1% below the all time high of $68,789.

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