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Bitcoin falling about 60% for the year may have struck down the narrative that the leading cryptocurrency could serve as a safe haven, but it\u2019s slowly returning to form alongside gold.<\/p>\n
Bitcoin, especially during the height of its bull run last year, has been touted as a way to park cash in an uncertain market environment, earning the moniker of \u201cdigital gold.\u201d Of course, fast forward to the start of 2022, and its discorrelation from stocks and bonds fell to the wayside.<\/p>\n
Bitcoin, for the most part, has been following both assets downward, but it\u2019s been relatively stable over the past couple of months. Analysts over at Bank of America revealed that bitcoin has been standing alongside gold, regaining its safe haven status.<\/p>\n
\u201cAlkesh Shah and Andrew Moss of Bank of America Securities (BofAS) said in a recent report that the world\u2019s largest cryptocurrency now had a high correlation with gold prices, suggesting it is being used as a hedge against wider market uncertainty,\u201d a Decrypt article<\/a> noted.<\/p>\n \u201cAt the start of September, the relationship between gold and Bitcoin once again turned positive, and in early October, the correlation\u00a0reached its highest point in a year<\/a>,\u201d the article noted.<\/p>\n A rising tide of interest rates has the capital markets wondering if the U.S. Federal Reserve will continue tightening. As such, safe haven searching has investors rethinking bitcoin, especially given its recent correlation with gold.<\/p>\n \u201cA decelerating positive correlation with SPX\/QQQ and a rapidly rising correlation with XAU [gold]\u00a0indicate that investors may view bitcoin as a relative safe haven as macro uncertainty continues and a market bottom remains to be seen,\u201d the BofA analysts said.<\/p>\n Investors don\u2019t have to settle for pure bitcoin exposure when looking to achieve correlation with its price moves. Futures can accomplish this, as can an exchange traded fund (ETF) that caters to bitcoin futures, like the ProShares Bitcoin Strategy ETF (BITO)<\/strong><\/a>.<\/p>\n The fund provides exposure to bitcoin futures, tailing the price movements of the leading cryptocurrency on a normal market exchange. BITO has been exhibiting an almost one-to-one correlation with bitcoin\u2019s price since its introduction a year ago.<\/p>\n Furthermore, the fund is actively managed, giving investors the peace of mind of knowing that their investments are in the hands of seasoned portfolio managers. Bitcoin can be a volatile asset, and active management can make portfolio changes on the fly when market conditions warrant an adjustment.<\/p>\n Investors may be hesitant to gain pure bitcoin exposure given its trading on unregulated exchanges. BITO provides this tactical exposure while staying within the regulatory framework of the traditional financial market, adding to its potential safety.<\/p>\n For more news, information, and strategy, visit the\u00a0<\/em>Crypto Channel<\/em><\/a>.<\/em><\/p>\n<\/p><\/div>\nTail Bitcoin\u2019s Price Moves With Futures<\/h2>\n