Cryptocurrencies
Bitcoin as ‘Digital Gold’ Thesis Undermined by Crypto Selloff
- Bitcoin has decoupled from gold’s price since last month
- This year’s rally mainly driven by new US Bitcoin ETFs
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The cryptoasset selloff is testing the industry axiom that Bitcoin is the equivalent of “digital gold,” and therefore belongs in an asset portfolio to hedge against stock market gyrations, like seldom before.
As equities sank on Monday and carry trades unraveled, Bitcoin behaved more like stocks than gold, at one point tumbling 17% to below $50,000 before recouping some losses. Its correlation with the precious metal turned negative in July, data compiled by Bloomberg show.