A Report On The Growing Correlation Between Bitcoin And Gold As A Bullish Sign

The Report On Bitcoin And Its Correlation To Gold

Leading investors to expect further upside from BTC price is the correlation between Bitcoin and gold as daily returns are increasing.

This week as Bitcoin rallied to its 2020 high of $ 11,392 the correlation with gold increased and currently, BTC’s monthly correlation with gold on daily returns sits at 0.6 according to the data from CryptoCompare.

Nearing a new high before pulling back alongside Bitcoin, the correlation started to increase as gold broke through $1,900.

According to data from Kraken exchange’s research team, the increase in correlation is representing a trend shift as the relationship between the two had previously been falling. 

Around the same time, Ether’s correlation with Bitcoin started to decrease as the figure now sits at 0.56 while the correlation between gold and Bitcoin has surged. 

As CryptoCompare research analyst, James Li explains, they started to see prices decouple within the crypto space with innovations and hype around DeFi. Alongside gains from other DeFi tokens, Ethereum is an enabler as they saw a much stronger gain over the last few weeks. 

Why Is It That BTC’s Strong Correlation To Gold Is A Bullish Or Bearish Sign?

Preparing to pass yet another coronavirus stimulus bill, the US Federal Reserve has now often referred to Bitcoin as digital gold with the correlation with the precious metal further cementing its position as a store of value asset. 

The context according to Li has certainly changed while the previous correlations between Bitcoin and gold led to surges in the BTC price.

Li was found elaborating by saying that,

Towards the end of 2018, was the last time Bitcoin made a moderate correlation with gold which was then a month earlier in November 2018 that bitcoin suffered a 50% drop making some subsequent rebounds. A couple of months earlier, gold was recovering from a somewhat cyclical drop where back then the moderate correlation was perhaps a bit of a coincidence. 

With the fallout of the COVID-19 pandemic, the dollar and the economy continue to struggle where it seems likely that the store of value assets like Bitcoin and gold continues to be in high demand. 

As Here Is Cash App: Joe Rogan Tells His 200M Listeners To Buy Bitcoin

Joe Rogan is being paid big bucks to talk up Bitcoin according to the scripted spiel on his most recent podcast by Cash App. 

To read out an advertisement for his sponsor Cash App and to tell listeners to buy Bitcoin, podcaster Joe Rogan used the first few minutes of a recent episode. 

Released on July 28, the episode 1515 of the Joe Rogan Experience adopted the customary tone thereby used in plugging advertising sponsors that included Cash App before going on to state what are some of the serious technical points about Bitcoin like stacking sats.

Further on Rogan red out the following with no central authority bitcoin is a transformational digital currency acting as a decentralised peer-to-peer payment network powered by its users. As I have started loving it and wishing it was the way currency was exchanged as also maybe it will be in the future and so get on board. 

Here, What’s A Sat Joe?

As it was that many of his 200 million or so listeners may not be familiar with the term sats, the podcaster speculated on who Bitcoin creator Satoshi Nakamoto really was as he explains, that he doesn’t even know if that is a real name as also one of those weird things where the Internet always tried to figure out who it is. 

Previously stating his podcast doesn’t necessarily to have ads from Cash App, Rogan makes the endorsement at least partly genuine. 

How Is It Reaching Out To Influencers?

Giving users the option to buy and sell BTC since 2018, Cash App is the payment service developed by Square whereas apparently ramping up efforts to promote the service are Twitter and Square CEO Jack Dorsey.

On July 14, Dorsey tweeted the picture thereby featuring the Bitcoin logo on a Cash App sponsored NASCAR vehicle driven by Darrell Bubba Wallace as the only African American driver in NASCAR’s top racing series becoming the much higher profile recently in the months where efforts to combat the perceived racism in the sport. 

And Finally, All About Cash App Sponsorship, Crypto By Choice

Reported in June was that Rogan now uses privacy-focused browser Brave avoiding internet ads along with Google tracking as the podcaster also had many prominent guests on his podcast for the crypto-sphere including Bitcoin bull Andreas Antonopoulos as well as Elon Musk.