According to Data Analytics firm Skew, the values of Gold and Bitcoin reached a monthly mean of correlation of 70% that is certainly an all-time-high value. In the second quarter of 2020, an earlier peak was below 60%. The rising correlation shows the belief that cryptocurrency, especially Bitcoin is a potentially efficient store of value, specifically at the time of economic turmoil, Skew said. The London based company said on twitter, Gold and Bitcoin all-time-high monthly average giving momentum to the potential store of value narrative for bitcoin in these money printer times. Undoubtedly, both gold and bitcoin have drastically risen throughout 2020, driven by relentless fiat money printed by financial institutions and governments, wish to keep their economies positive during the Covid-19 pandemic.
Gold rise to a high record of $2,000 per ounce and bitcoin hit a yearly high record of $12,000. However, both the assets dropped drastically this Tuesday when Russia announced its first-ever approved vaccine for Coronavirus. Both the assets suffered its biggest one-day crash since the last seven years, gold tanked 4.7% to $1,932 while bitcoin fell more than 3.9% to $11,200, a dual decrease will indicate the correlation. The author of Rich Dad, Poor Dad, Robert Kiyosaki told his twitter followers that, the real problem is extensively weak economic and debt, further says, I am an investor and it’s the best time to invest in gold, silver, and crypto bitcoin. The damage caused by the Coronavirus pandemic is prompting the governments to dole of trillions of USD in economic stimulus, which is simultaneously causing safe assets to appreciate. As digital cash, bitcoin appeals to users to the cashless internet economy majorly on a report of its characteristics that include the lack of interruptions and control of government policies and third-party oversight.