Bitcoin, digital gold Some predicted, behaving more like AUD-JPI FX Market Meter Risk

The Trading War of President Donald Trump introduced significant volatility to financial markets since March, which is an answer to chase the property in which they believe they are giving alive in this turbulent environment.

What is clear: bitcoin (Btc) Isn’t one of them, much to harass the bureau investors who have long thought about the greatest cryptocuracy as a digital gold either as a value store or investment in a refuge. The reality is that since the beginning of the Trading War, Bitcoin became closer together with the pair of Aussie Dollar-Ien (AUS / JPI), a barometer from the foreign exchange market.

Data from TradingViews show the coefficient for correlation of 90 days between bitcoins and para / JPI pairs positive at the end of February and has been hit by the highest from November 2021 since then. Years. The Tariff War of the two nations led Wednesday on the chairman for Chinese Reserve on Wednesday.

Correlation of 0.80 – The maximum value is 1 – considered strong, it implies that two variables, BTC and AUD / JPI, are closely related to their movements in the same direction.

In contrast, Bitcoin correlation with gold with gold went negatively at the end of February and has fallen on -0.80 since then, only above the minimum -1. This means that the two of them are closely connected in their movements, but in opposite directions.

BTC, Proxy for Risk

Australian dollar, which are sensitive to the Chinese and home currency of the nation of export commodity exports, is considered a risk currency. Jen is a safe refuge because Japan was a net international creditor with interest rates near the cash interest.

When global markets are optimistic and trade demand rises, AUD usually appreciates, reflecting higher risk appetite among investors and yen fall. The opposite is valid in when they become a risk aversion.

Traders, therefore, monitor AUD / JPI as an indicator of risk, watching the input as positive signs for risky assets such as actions and vice versa. Bitcoin, which has already been incurred in a comparable roleHe strengthened his position. The correlation data show that BTC is now many attorneys for risk risk as AUD / JPI.