The majority of investors will still view Bitcoin as a “relative safe-haven” despite the recent market drop, according to Bank of America (BoA) digital asset strategists.
According to research by BoA, Bitcoin’s shifting relationship with traditional markets shows that investors are still very interested in Bitcoin and are treating it as a safe-haven asset.
Alkesh Shah and Andrew Moss, two BoA digital asset strategists, told Bloomberg that the crypto market has seen Bitcoin’s correlation with Gold increase from 0 to 0.5 since mid-August. .
Additionally, Bitcoin’s correlation with major indexes has also dipped below record highs, with the S&P 500 at 0.69 and Nasdaq touching 0.72.
“Investors are viewing the world’s largest cryptocurrency as a relative safe-haven amid macro uncertainty,” said two BoA digital asset strategists.
According to The Block, compared to the stock market, the cryptocurrency market is not so bad although recent on-chain data shows that the number of cryptocurrencies held by long-term investors is in a state of disarray. loss status.
Some analysts on Twitter say that Bitcoin is very close to a bottom.
With Bitcoin trading around $19,200 at press time, Bitcoin’s 30-day volatility is extremely low, down just 1.4%, according to Coinbase data. Bitcoin remains the number one cryptocurrency by market cap, it is currently 72.1% below its all-time high of $68,789.
Read more: Global recession may last until near 2024 Bitcoin halving — Elon Musk
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