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George Ma
April 7 09:00

VanEck: Bitcoin strengthens correlation with gold and safe asset status

In the long run, however, the figure remains low.
Experts of VanEck Global, fund management firm, concluded that in the short term, Bitcoin will correlate more with gold amid the crisis caused by the COVID-19 pandemic. This strengthens the status of the cryptocurrency as a refuge asset.

In the long run, however, the figure remains low.
Correlation between Bitcoin and Gold. Source: VanEck
Experts also stressed that the correlation between the price movements of Bitcoin and the value of U.S. bonds, which traditionally serve as a safe haven for investors during sales on the stock market, has increased.
As of the investment attractiveness of Bitcoin, VanEck analysts noted that adding a digital asset to the portfolio with 60% of shares and 40% of bonds can significantly reduce its volatility. However, for this purpose, there is no available bitcoin-based stock exchange funds (ETF) currently in the U.S., they recalled.
VanEck previously tried to get SEC approval to launch a bitcoin ETF together with SolidX. Last year the companies filed a new application but withdrew it in September amid uncertainty of the regulator.