The price of Bitcoin has jumped nearly 90% since hitting a year low in mid-March, currently trading above $7,300.

Not just price, the hash rate has also started coming back up, increasing by 7.3%. This means inefficient miners have started to capitulate and are being replaced by efficiency miners, “which is positive for the long-term health of the network.”

However, BTC price still continues to follow the stock market and continues to be a risk on asset. Actually, the Bitcoin’s Pearson correlation with S&P 500 reached a new high while Spearman correlation isn’t, as per Coin Metrics.

#Bitcoin (black) and S&P futures (blue) still in step pic.twitter.com/pbeHhCgG3T

— Charlie Morris (@AtlasPulse) April 8, 2020

But at the same time, the safe-haven asset narrative of bitcoin is also not only intact but could be stronger than ever.

While the one-month correlation between S&P 500 and Bitcoin on an hourly basis is at record highs so is gold’s correlation with BTC.

In mid-March, bitcoin did sell off aggressively in line with equity markets but so did the precious metal due to forced liquidations that happened in about every financial market. And since then, both Bitcoin and gold have recovered much of their losses.

According to Coin Metrics data, over the past 30 days, bitcoin’s correlation with gold is now at all-time highs. This has been because of the government firing up their money printer and lowering the interest rates to zero. Coin Metrics noted,

“Unprecedented monetary policy and fiscal stimulus from nearly every country in the world is forming the base for a credible narrative of increased risk of severe financial imbalances and the potential for long-term increases in inflation.”

Tidal wave of liquidity coming in the next year. Annual rates of change will hit 40 year highs in coming months. Might even see 20% y/y numbers. Will Trump finally get to relive the 80s type boom times again?

Never underestimate the power of the 0 interest rate. +Gold and Btc. pic.twitter.com/00D7lzIzLq

— Dan Tapiero (@DTAPCAP) April 6, 2020

According to Max Keiser, host of the Keiser Report, during the volatile market conditions, investors should be looking at gold, silver, and bitcoin which are stores of value. He said,

“The next alternative hard money, aside from silver, is bitcoin, and that’s why you see interest in bitcoin right now, it’s up this year. It’s one of the few markets in the world that’s up in 2020.”

Keiser told Kitco News that the myth that bitcoin can’t be a store of value due to its volatility is busted in 2020. This year, Bitcoin is the “least volatile asset class,” less volatile than stocks, oil, and many currencies. He said,

“Bitcoin is coming into its own in 2020 and it is a store of value, it is gold 2.0, and it will achieve a market capitalization like gold in the many trillions of dollars.”

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