BTC can't be compared to Gold, not yet

in #trading6 years ago (edited)

Bitcoin does not just represent itself, it represents the whole cryptomarket as of now.

Currently if Bitcoin has moved, the S&P500 had reacted in a positive correlation so far. While the VIX Chart has been moving with a negative correlation (just like S&P and VIX is negatively correlated) to Bitcoin, marking the idea if investors feel more free to take risk, btc moves up and so does the S&P (just like Biotech is a good risk indicator for institutional investors.)

Another reason Bitcoin cant be compared to Gold yet, Gold moves according to interest rates of the US fed, with current rate hikes, gold is experiencing a free fall, as treasuries are considerable investments, compared to gold in the current status of the market. Ofc interest rates cause consumer consumption to decrease which in the long run will positively effect gold once again. Do fed interest hikes influence Bitcoin, as of present, we could say there is no correlation between interest rates and Bitcoin, at least I dont see any correlation.

As of now Bitcoin is a high risk class asset, gold is an asset class correlated to interest rates and stock market sentiment.
For now, as of course, Bitcoin in the future, may have safe haven attributes once the crypto market moves independtly of Bitcoin.

Bitcoin represents a market, the crypto-market, if it suffers, altcoins suffer, if it gains, altcoins are likely to gain (though that theory is currently being disproven)

When the day comes, and top 20 coins move independtly of the Bitcoin movement, only then we could consider Bitcoin becoming a commodity compared to gold, because ppl see value in saving it.

Rather Bitcoin could be seen as the index of crypto and it will take sometime before crypto moves independtly from Bitcoin.

Just because a chart ( as per data dash) looks like a gold pattern, doesn't mean it will behave in the same way or represent the same investing values.

(source pic https://www.google.de/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjsh9e9rMncAhUxsKQKHVesBGAQjRx6BAgBEAU&url=https%3A%2F%2Fgoldstockbull.com%2Farticles%2Fbitcoin-not-enemy-gold%2F&psig=AOvVaw1dqvH8_I2Ev4XfTcV14SEY&ust=1533126655695204)

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