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Fred Thiel: “Bitcoin and gold show differently directed dynamics.

The CEO of Marathon Digital reports a decline in the exchange rate relationship between two popular financial risk hedging instruments.</div

Fred Thiel, CEO of mining company Marathon Digital, said that the global financial market is showing investors a drop in the correlation between the value of gold and the market rate of bitcoin.

While the value of the BTC is showing an explosive 85.7% increase, the market value of gold has been gradually declining. Against this background, the asset correlation coefficient shows an inverse relationship: 0.89.

In April, the analytical company Kaiko cited the correlation between the VTS and gold in the range of 50%. At the time, according to Kaiko analyst Dessislava Aubert, this represented the strongest connection between the two assets in more than a year.

Commenting on the performance of VTC and gold, Fred Thiel suggested: the drop in correlation between the two assets, which have traditionally been seen by investors as effective protections against market volatility, not only signals a shift in priorities in favor of digital assets, but also demonstrates a greater availability to a broader range of investors.

The day before, MicroStrategy announced
that it had purchased 12,333 more VTCs for a total of $347 million.. MicroStrategy began buying up bitcoins in 2020, believing the crypto-asset was the best means of savings.