Bitcoin enthusiasts hail that the very survival of BTC during this economic turmoil is proof of its success factor.  They continue to reinstate that Bitcoin is equal to fiat money, and that Bitcoin has become a necessity as fiat currencies are broken.

Forbes states, despite the price reason for Bitcoin, rise not being clear, it is very clear that the current surge is a retail investor driven.

Analysts call this an organic and new interest in Bitcoin.  Whether by Fear of missing out or for any other reason, the uptick has picked up new users and new trading volume. With the Co-Vid crisis and blanket quarantines, people are thinking about the need to find a way out of the centralized financial systems.

Sydney Ifergan, the Crypto Expert, tweeted:  “Rescue deals, stimulus packages, and governments printing money has all let to the spark of new investor interest in Bitcoin (BTC) as people are now realizing, how fiat can get messy at a point in time.”

It has also been seen that the correlation of Bitcoin price to gold has also increased during the pandemic. 

Gabor Gurbacs, a digital assets strategist and Bitcoiner tweeted:  “Quick take: > Bitcoin correlations to gold increases during the COVID19 pandemic.  A small bitcoin allocation may have reduced volatility for 60%-equity/40%-bond portfolios.”

Previously, it was seen that the correlation of Bitcoin to gold was low in the long-term; however, during the recent COVID-19 induced broad market sell-off, they have noticed that the Bitcoin and gold correlation has increased significantly.

Bitcoin (BTC) Halving Coincides with US Elections

And, yet something interesting in a tweet from one PlanB:  “#Bitcoin halvings coincide with US presidential elections (2012, 2016, 2020, etc.) chance or Satoshi’s genius?” Of note, there will always be some volatility before and after the elections.  There will be a crisis, pumping in the stock market, and more.

Fresh investors are interrogating into how many Bitcoin would potentially increase portfolio diversification, according to Gabor Gurbacs. Since Bitcoin had a low correlation to traditional asset classes and broad market equity, there was no clear ideal about how much is enough.

The correlation of Bitcoin (BTC) with traditional asset classes have begun to increase investor interest is brewing.  Many investors opine that Bitcoin might be the safe-haven status at least triggered by the pandemic effect.  Investors are looking for a patch to recover from their losses.  When the market recovers, people will want to be wealthy again.