Bitcoin has been heralded as many things: Hard Money, Digital Gold, Uncensorable Banking, and Electronic Cash. As the technology powering blockchain becomes more understood and widespread, Bitcoin has also taken on the label of an “Uncorrelated Asset.” This means that it does not follow, or trade with any other publicly available stock or ETF. Bitcoin has also taken on the label of an “Uncorrelated Asset.”
While this has been a common rallying call for Bitcoin enthusiasts, a deeper look is necessary before proclaiming it uncorrelated or a financial “safe haven.” Here we will examine several narratives supporting both sides of the argument.
The recent news from Iran has been a test case for how Bitcoin is traded during international unrest. The last week showed a look at the global trading mentality. The price jumped from $6900 – $8500 over a matter of days. The initial pump corresponded with the report of Qassem Soleimani’s death by US drone strikes on January 2nd.
The price rose more as Iran retaliated against a base…