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areennima2
@areennima2
Under expectations of a global economic recession, Bitcoin’s appeal as a safe-haven asset grows due to its decentralized nature and limited supply, akin to digital gold. However, its volatility contrasts with gold’s stability. Historically, Bitcoin’s correlation with gold has been inconsistent—sometimes moving in tandem during uncertainty (e.g., 2020 pandemic), but often diverging due to speculative trading. Data from 2023-2025 shows a weak positive correlation (around 0.2-0.3), far below gold’s stronger ties to traditional markets. While gold remains a proven hedge, Bitcoin’s allure lies in its potential for outsized returns, tempered by higher risk.
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