Bitcoin was designed to share several key similarities with gold, but the end result was an all-digital asset that does what the precious metal does best even better and then some.
Bitcoin and gold have formed a striking correlation throughout 2020, although this has shown some signs of degrading over the past few weeks as BTC continues extending its multi-month bout of sideways trading.
Bitcoin’s multi-month consolidation phase has caused its correlation with other assets to degrade, leaving investors to question where it might trend next.
Bitcoin’s price action has been lackluster in recent times, and many attribute this to the cryptocurrency’s incredibly tight correlation to the stock market.