‘Digital Gold’ Label Shifts as XRP Correlation to Gold Outpaces Bitcoin

The same can be said about the association between Litecoin and “digital silver”. The critical analysis of the relationships between cryptocurrencies …

Up until the most recent correction, Bitcoin (BTC) price was repeatedly pushing above $10,300 and attempting to reach a 2020 high above $9,500. 2020 started with a strong upward trend and altcoins followed Bitcoin’s price action, as thoroughly reported in Cointelegraph.

This aggregate trend leaves the door open for a full bullish period ahead since the last Bitcoin high growth period was between April and June 2019.

The volatile behavior observed since the start of the year may be causing the traditional assumptions associated with Bitcoin and other top currencies to be challenged. One of those assumptions is the belief that Bitcoin is closely connected to gold.

Cryptocurrency market monthly overview. Source: Coin360

Cryptocurrency market monthly overview. Source: Coin360

Cryptocurrencies and the precious metals narrative

A previous analysis reported by Cointelegraph has shown that the digital gold narrative attributed to Bitcoin may not be as realistic as investors believe. The lack of a significant relationship between Bitcoin returns and gold returns as well as the low correlations across the years are contributing to the challenge to the narrative.

The same can be said about the association between Litecoin and “digital silver”. The critical analysis of the relationships between cryptocurrencies and precious metals opens the door for further research.

Correlation between top 10 cryptocurrencies and gold

By analyzing the correlations between the top 10 cryptocurrencies in the market and gold returns during January 2020, we unexpectedly found that XRP, rather than Bitcoin, has the strongest correlation to gold. XRP is correlated at 34.1%, while Bitcoin is correlated at 21.5%. Moreover, both Ether (ETH) and Bitcoin Cash (BCH) share a very similar correlation to gold as Bitcoin does with 20.1% and 19% respectively.

In the opposite direction, Tether (USDT) has an inverse correlation with gold at -37.7%. This is surprising since the behavior of a stable coin like USDT could be more correlated with a precious metal like gold than a much volatile coin like Bitcoin.

A correlation of 100% means that each cryptocurrency and gold move completely in the same direction, while -100% correlation means they are inversely related, or in simpler terms, when one goes up, the other goes down. A correlation of 0% means that each cryptocurrency and gold is not related in any way.

Correlation between Bitcoin and the top 9 currencies since Jan. 1, 2020.

Correlation between Bitcoin and the top 9 currencies since Jan. 1, 2020.

By looking at a wider time frame like 2019, the assumption that Bitcoin is more related to gold is sustained. Bitcoin is correlated at 15.5% with gold for the entirety of 2019, being the most correlated currency with gold from the top 10.

As seen before, Bitcoin Cash is the second most correlated currency with Bitcoin at 8.2%, followed by Bitcoin SV (BSV) at 7.3%. For the entirety of 2019, XRP is less correlated (7.1%) with gold than in 2020, challenging the idea that a stronger correlation can be sustained over a long-term period.

Correlation between Bitcoin and the top 9 cryptocurrencies during 2019.

Correlation between Bitcoin and the top 9 cryptocurrencies during 2019.

Outstanding cumulative returns since the start of the year

The start of 2020 witnessed the start of a strong positive trend. If an investor bought any of the top 10 cryptocurrencies between Jan. 1, 2020 and Feb. 9, 2020, they would be looking at a cumulative return of at least 134%, when Tether is excluded from the analysis. From the top 9 currencies, Bitcoin produced the least profit, shifting one’s emphasis to the possible altcoin bull run ahead.

The biggest positive trend was seen by Bitcoin SV and Bitcoin Cash with a cumulative return of 228% and 179%, respectively. Other top coins like Binance Coin (BNB), EOS, Ether, Litecoin, Tezos (XTZ) and XRP offered investors a cumulative return between 138% and 167%. Meanwhile, gold prices grew by slightly more than 4% in January.

Cumulative returns for the top 10 currencies since Jan. 1, 2020.

Cumulative returns for the top 10 currencies since Jan. 1, 2020.

Cumulative returns for gold in January 2020.

Cumulative returns for gold in January 2020.

Which is digital gold, XRP or Bitcoin?

A recent report from Coinbase suggests that Bitcoin will come closer to becoming digital gold due to underlying features of the network which are similar to the ones shared by gold as the scarcity of the asset aligns with the assumed bullish period ahead.

However, the results also show that since the start of the year, XRP has been the cryptocurrency most correlated to gold and Bitcoin follows in second place. As we move further into 2020, the relationship between gold and Bitcoin may come closer to one observed throughout 2019, when the digital asset was the most correlated coin to gold.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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2020 Crypto Market Prediction – Cryptos to Watch Out For

Although some new players were introduced to the battle field in form of Binance Coin (BNB), Tezos (XTZ) and Chainlink (LINK), that outperformed …

It would be fair to say that this year has been the continuation of bear market for almost all of the altcoins. Although some new players were introduced to the battle field in form of Binance Coin (BNB), Tezos (XTZ) and Chainlink (LINK), that outperformed every digital asset even the ‘Crypto Goliath’, bitcoin. But just before we look ahead and predict the course of the crypto market as we take a dive into a new decade, it would not be fair to overlook the path crypto market took in 2019.

Crypto Market 2019 Journey

Bitcoin started 2019 with a marketcap of $66.3 billion and was lurking around $3800. Currently, the most sought after digital asset is valued at $7,381 with a market cap of $133.8 billion. Since bitcoin gained an impressive 95% in 2019…

Crypto Market 2019 Journey

On the other hand, altcoins crypto winter continued and the assets plunged to extreme lows. The second largest crypto by marketcap Ethereum suffered once again this year and the digital asset will step in 2020 at the same place where it started 2019 and that is around $130. In July 2019, Ethereum peaked at $350 but the digital asset slipped back to where it started the year.

Ripple (XRP), the cross border transfer token is the worst performer in the crypto arena of 2019. The digital asset stands where it stood 2 years ago! Once considered the crypto rock star (which is indeed debatable), XRP lost almost 95% from its all-time high.

On the other hand Litecoin (LTC) had quite a roller coaster ride in 2019. Regarded as the ‘Digital Silver’ (with bitcoin being the Digital Gold), the crypto asset is lurking around $43 and is back where it started the year. The crypto asset experienced ‘Halving’, where the reward for crypto miners was halved to keep a check on inflation, and its price surged to $145 but that was sadly the only highlight for LTC in 2019.

Stellar (XLM) shared the same fate as XRP in 2019 as the crypto lost almost 60% and stretched its bear run to 2 years now. Other top cryptos like TRON, EOS, Cardano, Monero and bitcoin’s fork Bitcoin SV more or less will finish the year same as where they all started.

Cryptos to Look Out for In 2020

Binance Coin (BNB) was undoubtedly the highest performing digital asset for 2019. BNB, a utility token from one the world’s largest crypto exchange experienced a price surge of 560% in the first half of the year. Analysts suggested that the performance of the token can be attributed to the fact that Binance was open and transparent about $41.5 million bitcoin hack.

The company informed its investors as soon as they assessed the damage done by the attack. Just days after the attack, CEO and founder Changpeng Zhao held an Ask-Me-Anything session on reddit. On the other hand Binance launchpad IEO’s produced more than 600% returns as the exchange took most of the limelight in 2019.

Tezos was the other performer of 2019 with a surge of 185% since January 1st. Major exchanges offering staking rewards has driven XTZ prices making it one of the best performing altcoins of the year.

Ever since Facebook announced its Libra crypto, the crypto market was much hyped and a buzz but regulators came hard on Libra and hearings at Capitol Hill have immensely put the project in jeopardy.

While talking to Bloomberg, Blockchain Capital General Partner, Spencer Bogart gave an insight to survey conducted by his company he said;

“There are two factors to the halving represents a shelling point. There is a significant sum of capital that is in that position. we run a survey every 18 months that surveys more than 2000 american adults.

One of the things we ask is kind of questioning their conviction. We ask, what extent do you agree or disagree that most people will be using bitcoin within the next 10 years. In the spring of 2019 when we asked this, 33 percent of people and 43% of those 18 to 34 said they somewhat or strongly agree. We also asked them about their propensity to purchase. How likely are you to buy bitcoin in the next five years? 33% of those 18 to 34 said they are very or somewhat likely to buy in the next five years.

People are relatively indifferent as to whether they purchase today or tomorrow. It drives more purchasing. importantly, this reflexive feedback loop drives the bitcoin market where rising price drives more infrastructure, more computing power secure in the network. All of which feeds into a rising price”

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Paxos Standard Tops 24 Hour Trading Volume of $226.02 Million (PAX)

One Paxos Standard token can currently be bought for $1.01 or 0.00013703 BTC on major exchanges including Bittrex, Coinsuper, BitMart and BitMax …

Paxos Standard (CURRENCY:PAX) traded 0.2% lower against the U.S. dollar during the 1 day period ending at 7:00 AM ET on December 30th. Paxos Standard has a market cap of $229.42 million and $226.02 million worth of Paxos Standard was traded on exchanges in the last 24 hours. One Paxos Standard token can currently be bought for $1.01 or 0.00013703 BTC on major exchanges including Bittrex, Coinsuper, BitMart and BitMax. During the last week, Paxos Standard has traded 0% lower against the U.S. dollar.

Here’s how similar cryptocurrencies have performed during the last 24 hours:

  • POPCHAIN (PCH) traded up 1.5% against the dollar and now trades at $0.0022 or 0.00000030 BTC.
  • Origin Sport (ORS) traded down 2.3% against the dollar and now trades at $0.0060 or 0.00000081 BTC.
  • HoryouToken (HYT) traded 1.4% higher against the dollar and now trades at $0.0007 or 0.00000009 BTC.
  • Vezt (VZT) traded flat against the dollar and now trades at $0.0123 or 0.00000129 BTC.
  • ORS Group (ORS) traded down 2.1% against the dollar and now trades at $0.0204 or 0.00000386 BTC.

About Paxos Standard

Paxos Standard (CRYPTO:PAX) is a proof-of-work (PoW) token that uses the ETH Token hashing algorithm. It launched on September 10th, 2018. Paxos Standard’s total supply is 227,849,144 tokens and its circulating supply is 227,848,504 tokens. Paxos Standard’s official Twitter account is @

and its Facebook page is accessible here. The official website for Paxos Standard is paxos.com/standard. Paxos Standard’s official message board is medium.com/@PaxosStandard.

Buying and Selling Paxos Standard

Paxos Standard can be bought or sold on the