Bitcoin Not Yet Performing Like Digital Gold — Market Talk
Bitcoin is not yet performing a role as digital gold as its correlation to equities remains too high, according to Citi's head of asset allocation Alex Saunders. "The problem with the digital gold thesis is that bitcoin still has a large equity [correlation]," he says. Saunders adds that in five to ten years, bitcoin should tend toward becoming a hard asset and hedge against the falling value of government-issued currencies. But the market will only be seen as mature when the correlation to gold is much higher than it is at present, and the correlation to equities much lower. Bitcoin is 1.1% lower at $73,499, and 16% lower year to date, while spot gold has seen a 7% year-to-date decline. ([email protected])