Bitcoin‘s shifting relationship with traditional markets hints that investors may again be thinking of it as a haven asset, according to research by the Bank of America.
The crypto market heavyweight has seen its correlation with gold increase from zero to 0.5 since mid-August, Bloomberg first reported, citing BoA digital assets strategists Alkesh Shah and Andrew Moss.
Its correlation with major indexes has also flattened out below record highs, with the S&P 500 registering 0.69 and the Nasdaq hitting 0.72.
Investors may be viewing bitcoin as a “relative safe haven” amid macro uncertainty, Moss and Shah wrote, adding that “a market bottom remains to be seen.”
The new data indicates a change from the cryptocurrency’s tendency to move in lockstep with equities markets.
Bitcoin was trading around the $19,200 mark at the time of writing, up about 1.2% in the last 24 hours, according to Coinbase data. Still the number one cryptocurrency by market cap, it is now sitting at 72.1% below the all time high of $68,789.