What is The Market Value Of Gold? Why Do Investors Start To See Bitcoin As A Safe-haven Asset?

What is The Market Value Of Gold? The Market Capitalization of Gold is currently around $11.939 T. In this article, we will talk about, the market value of gold, and why investors start to see Bitcoin as a safe-haven asset.

What is The Market Value Of Gold?

The Market Capitalization of Gold is currently around $11.939 T. This value was obtained by multiplying the current gold price ($1,809 per ounce) by the world's above-ground gold reserves. Note that the estimated above-ground Gold reserves can vary by up to 20 % from one source to another.

As a consequence, the current Market Cap of Gold is between $9.551 T and $14.326 T.

Why Do Investors Start To See Bitcoin As A Safe-haven Asset?

Being uncorrelated or negatively correlated to the overall economy, safe-haven assets are those that are expected to protect portfolios during a downturn. A good example of a safe-haven asset is gold.

Investor confidence in bitcoin as a store of value has historically been measured by analyzing its relationship to gold. From June 2021 through February 2022, the two were strongly correlated, but the correlation changed in March.

A positive correlation between two assets means that they are acting similarly, whereas a negative correlation means that they are acting in opposition to one another.

The correlation between gold and bitcoin resumed its upward trend from the beginning of September, reaching its highest level in a year at the beginning of October.

At the same time, Bitcoin's relationship with blue-chip stocks on the S&P 500 (SPX) and Nasdaq 100 (QQQ) reached all-time highs on September 13, though has since slowed.

The analysts wrote: “A decelerating positive correlation with SPX/QQQ and a rapidly rising correlation with XAU [gold] indicate that investors may view bitcoin as a relatively safe haven as macro uncertainty continues and a market bottom remains to be seen.”

What is The Market Value Of Gold? Why Do Investors Start To See Bitcoin As A Safe-haven Asset? -- Hopefully, reading this article can help you to understand it better.