Bitcoin Correlation with AUD/JPY Hits Highest Level Since November 2021
President Donald Trump's trade war has increased volatility in financial markets, affecting investor behavior.
Key points include:
- Bitcoin is no longer viewed as a safe haven asset, as its correlation with the AUD/JPY pair has become positive.
- The 90-day correlation coefficient between Bitcoin and AUD/JPY reached 0.80, indicating strong alignment in their movements.
- This change occurred as cumulative tariffs on Chinese imports to the U.S. rose by 245%.
- In contrast, Bitcoin's correlation with gold turned negative, dropping to -0.80.
- The Australian dollar is seen as a risk currency while the yen acts as a safe haven.
- Traders monitor AUD/JPY as a risk indicator for market sentiment; Bitcoin now mirrors this role.
