Since Black Thursday, Bitcoin (BTC) has become a better defense against the US dollar than gold. Meanwhile, the tires of the S&P 500 have reached unprecedented levels.

Track interval after black Thursday
Ever since the Bretton Woods system disbanded in 1971, investors have viewed gold as a defense against Fiat. Gold has consistently shown a negative correlation with the dollar, with a few rare exceptions, while Bitcoin and the dollar were not related to each other until recently.

However, since the black collapse on Thursday in March, Bitcoin has shown a stronger negative correlation with the dollar than gold. The first reason for the change was that Bitcoin lost almost half of its value, and the dollar crashed as investors flew towards quality.

The market is being cut by the US government
The roles were soon reversed. Bitcoin compensated for the losses it suffered during the crash, while the dollar fell against major currencies and gold. The market has reduced the US government's response to the COVID-19 crisis. High death rates, almost 50 million unemployed and unique stimulus packages worth one trillion dollars have not increased confidence in the country's economy in the eyes of investors.

In this inflation environment, Bitcoin, with its coded inflation and limited offerings, may begin to see it as a viable alternative for traditional investors. In addition, it offers certain advantages over gold, such as the limited offer mentioned above and easy transportation immediately.

Source: CoinTelegraph

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