This One Chart Shocks Wall Street

bitcoin gold feb 2021

Wall Street is abuzz with a chart comparing the performance of bitcoin and gold over the past two years. Gold was rising until March 2020 with bitcoin not moving. Gold then peaks in August and starts falling, while bitcoin takes off. This shows bitcoin is an uncorrelated store of value, but some speculate bitcoin is replacing gold’s role as a safe haven asset. That’s because bitcoin is perceived to have responded a lot better to the economic shocks of 2020. While a $1.9 trillion stimulus is on its way, for example, gold is falling in price. Bitcoin on the other hand is rising as a safe haven asset and a hedge is meant to do. That’s in part potentially because a lot of gold holders are moving to bitcoin, with billions taken off gold ETFs that have probably made their way to bitcoin. One reason may be because bitcoin is…

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