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Bitcoin’s Market Structure, Correlation to Gold, and Miner Revenue Mix

Jun 17, 2021 · 3 min read

By Ashwath Balakrishnan, and Jeremy Ong

Market Update

Crypto markets haven’t done anything notable today, with BTC and ETH up 1.5% each. Today’s edition looks into Bitcoin market structure, investor sentiment, and the network usage.

BTC and Gold’s Relationship

Back in 2019, BTC’s correlation to gold propelled the narrative that BTC is evolving into a safe haven asset. However, that relationship inverted in the second half of 2020 and it hasn’t recovered since. Fed Chairman Jerome Powell insisted that current inflationary pressure is transitory, but the Fed also did raise its expectation of inflation for the year. If BTC isn’t considered an inflation hedge — as gold is — by investors, then rising inflation could negatively impact BTC sentiment.

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