Chris Louney, the commodities analyst from RBC Capital Markets investment bank, claims that he has detected the signs of emerging negative relationship between gold prices and bitcoin prices on the global market.
The expert has presented his arguments on the matter in his recent research note, admitting that it was quite a challenge at first to tie these two assets, given that bitcoin is a newcomer to the stock market.
“It’s very hard to really put your hands around a tangible correlation between bitcoin prices and gold prices for most of the history,” – Mr. Louney said when interviewed by CNBS this week.
However, he added that “Towards the end of last year, we started to notice that correlation turned at least mildly negative”.
The peaking bitcoin price in December 2017 coincided with the word “bitcoin” climbing to the top Google search trends, at which point its correlation to gold prices was finally proved.
“When we saw interest in bitcoin peak as measured by Google trends, that’s really when we saw this marginal negative relationship between gold and bitcoin develop,” – the expert noted.
He believes that this correlation will strengthen in tandem with the further development of cryptocurrency-related set of technologies.