Analysts have long tried to imply a strong connection between Bitcoin and gold as safe-haven investments in times of trouble.
In theory, this works, as both the crypto asset and the precious commodity are used as a macro hedge against inflation, and the devaluation of fiat currency and traditional equities in tricky markets.
Take Kraken’s June 2020 report, for example. The crypto exchange, which has been celebrating its newly-found status as the first of its kind to win a US banking license, noted that Bitcoin’s connection to the price of gold had weakened as volatility and trading volumes declined in the early part of the year.
