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Bitcoin Is a Better Hedge Against USD Than Gold

Published 07/29/2020, 08:54 PM
Updated 07/29/2020, 10:40 PM
Bitcoin Is a Better Hedge Against USD Than Gold
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Since Black Thursday, Bitcoin (BTC) has become a better hedge against the U.S. dollar than gold. At the same time, its correlation with the S&P 500 Index reached unprecedented highs.

Since the disintegration of the Bretton Woods system in 1971, investors have looked to gold as a hedge against fiat. Gold has consistently exhibited a negative correlation with the dollar with some very rare exceptions, while Bitcoin and the dollar have been uncorrelated with each other until recently.

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