In the words of Alkesh Shah and Andrew Moss, “A decelerating positive correlation with SPX/QQQ and a rapidly rising correlation with XAU [gold] indicate that investors may view Bitcoin as a relative safe haven as macro uncertainty continues and a market bottom remains to be seen.”
Bank of America’s analysts Alkesh Shah and Andrew Moss stated that despite the bearish trend in the Bitcoin market, investors consider the token as a "safe haven."
They analyzed Bitcoin’s 40-day market trends and found correlations between the cryptocurrency and gold, thus reinforcing the notion of using Bitcoin as an inflation hedge.
They also noted that a large supply of Bitcoin was transferred from crypto exchanges to personal wallets, with the weekly outflows in October being the highest since June. This may indicate a slight decrease in sell-pressure.
The strategists praised the transparency of blockchain transactions which allowed them to gather data from several crypto exchanges, and added,
“The blockchain’s transparency gives us insight into the digital asset ecosystem that’s not available in traditional financial markets.”
BoA's analysts made these claims as Bitcoin’s volatility hit a multi-year low, causing it to become less volatile than Nasdaq.
