Bitcoin's Correlation With Gold Is Near an All-Time High. Does That Make Bitcoin a Buy?
Bitcoin has been pitched as a diversifying asset, but its correlation with gold isn't as positive as some may suggest.
Overview
Diversification is important to consider, particularly at a time when Wall Street's leading figures are warning investors about risk. For example, Jamie Dimon, the CEO of JPMorgan Chase (NYSE: JPM), recently suggested that "risks are shifting below the surface like tectonic plates" that could "cause meaningful disruptions when they shift or collide." Investors have been bidding up the price of gold as they look for a safe-haven asset just in case there's a Wall Street earthquake on the way.
Bitcoin's (CRYPTO: BTC) correlation with gold is near all-time highs. That has some suggesting that Bitcoin could be a gold alternative. Be careful of viewing this cryptocurrency as a diversification tool on par with gold.
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Originally published at www.fool.com.