“Bitcoin is a fixed-supply asset that can eventually become an inflation hedge”, they point. However, the growth of the BTC/XAU correlation is not the only indicator that points to the growing confidence of investors in Bitcoin as a store of value.
The correlation with the New York indices S&P 500 (SPX) and Nasdaq 100 (QQQ) would also show it. The correlation between Bitcoin and both the SPX and QQQ hit all-time highs on September 13, and has been on the decline ever since. “A decelerating positive correlation with SPX/QQQ and a rapidly increasing correlation with XAU indicate that investors may view Bitcoin as a relative safe haven as macro uncertainty continues and the market bottom remains out of sight.”
Bitcoin as a haven? Increases the correlation of cryptocurrency with gold
BofA strategists also mentioned the massive outflows of Bitcoin from exchange wallets to personal or self-hosted wallets. According to the study, weekly departures in early October were the largest since mid-June, marking the third consecutive week of departures. Strategists believe you can anticipate limited short-term selling pressure.
“Investors transfer tokens from exchange wallets to their personal wallets when they intend to HODL (hold out in crypto parlance), indicating a possible easing of selling pressure.”
Furthermore, they further explain that the report’s methodology included data from major Bitcoin exchanges, including Binance, Coinbase, Coincheck, FTX, Gemini, Kraken, and others.
Meanwhile, on the day of this Thursday, Bitcoin stands at over $20,740, up 0.45% in the last 24 hours.
Source: Ambito
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