28 Feb 2022
Last week saw gold behave as a safe haven asset vs BTC and indexesDirectionally the stock market and BTC moved in lockstep last week as the Russian invasion of Ukraine escalated. Meanwhile, gold saw strength.
Bitcoin has followed the stock market closely for a long while, evident by the 60-day correlation reaching new all-time highs recently.Last week’s market was no exception, with both bitcoin and various stock indexes seeing a sharp correction on Thursday amid the invasion before recovering on Friday.Meanwhile, gold showed clear tendencies of behaving as a safe haven asset as fear soared in the markets, evident by gold’s Thursday rally. In other words, gold behaved just as investors expect it to do.Since 2008, Russia has accumulated gold heavily, increasing its gold reserves from 450 tonnes to 2,200 tonnes. As more sanctions reach Russia, the long-term implications for gold could be interesting to follow, with a potential scenario being Russia seeking to use gold for barter.