Bank of America: The Correlation of Gold and Bitcoin Has Increased

Bank of America analysts have drawn attention to a sharp increase in the correlation between gold and Bitcoin prices. According to them, the two assets are depreciating against the backdrop of a rise in the US dollar.

When the US currency started to fall, the crypto and the precious metal, on the contrary, began to strengthen together.

Two Bank of America strategists have prepared a report that says that the correlation of gold and Bitcoin has renewed talk of cryptocurrency as a safe asset. They have recalled that Bitcoin is considered by many analysts as a tool for hedging inflationary risks.

The limited emission of cryptocurrency creates conditions under which the demand for BTC will strengthen. A similar situation is developing around the precious metal.

At the same time, Bank of America doubts that Bitcoin’s dependence on gold will continue.