Is Bitcoin a Digital Gold? Kaiko Data Indicate Otherwise

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Bitcoin has often been projected as the digital equivalent of gold as it acts as a store of value and inflation hedge quite similar to the functions associated with gold. However, if you ask any Bitcoin proponent about the parallels, most would say Bitcoin would rather displace gold and act as an independent asset class rather than digital gold. The recent data from Kaiko paints a similar picture as Bitcoin’s correlation with gold has reached a new 3-year low moving into negative territory.A negative correlation suggests the two asset classes would not follow the price pattern for each other while a positive correlation indicates the asset class would follow each other’s price movement. The negative correlation suggests Bitcoin and Gold are least co-related as an asset class.source