Gold and Bitcoin Prices Having Direct Correlation
January 25, 2018
Over the last weeks one could easily observe when cryptocurrency prices go down, gold grows dearer and vice versa.
Seeking Alpha analyst Scott MacDonald did a market research and found out prices for Bitcoin and gold are interrelated. That got more obvious after Bitcoin futures were issued.
The research pointed out that having collapsed to the lowest level Bitcoin price was ready to rise in a week already. While at the gold market the price tends to drop though being strong before.
Mark O'Byrne, founder to precious metals trading company Goldcore, is convinced in specific interdependence between Bitcoin and gold markets.
“Bitcoin traders told us they were concerned that the massive price appreciation was unsustainable and they got nervous about it — We think increasingly people are realising that these digital assets have much higher risk levels than the traditional safe haven asset”, as he noted.
Ross Norman, a gold trader from London, has confirmed there are many customers of different age who went at changing Bitcoin for gold.