Bitcoin is a touchy piece of asset that is difficult to predict, study, and follow in terms of technicality. This has led to some analysts seeking on how the budding electronic currency can be compatible with more proven investments, like stocks and gold.
Compatibility in assets can either be good or bad, meaning they do the opposite of what they are being in consonance with.
For bitcoin, the asset has been viewed to have no direct relationship to stocks and gold. Not too long ago though, there has been a unique leaning towards a small synergy with the yellow metal, and away from traditional stocks.
As is the current state of things, bitcoin - the world's most popular virtual currency - is still mainly considered as "digital gold", an asset for storing value.
On an external angle, this perception is being promoted further by advocates across continents in conjunction to a looming financial turmoil. Many believe that the crypto can be the new gold, and function as a sort of go-to sanctuary should things start crumbling globally.
While the digital currency has ushered in the week on a robust momentum, stock markets around the world are hounded by selling pressure.
Notably, the Dow Jones Industrial Average plunged by over 450 points early Tuesday with travel-related stocks succumbing to steep declines on worries the pandemic in China could spread and disrupt economies worldwide.
With bitcoin outperforming stocks in the midst of the coronavirus jitters, some analysts are convinced the digital currency is boosting its safe haven appeal - more so, as time-tested safe-haven asset gold has ascended by only 0.65 percent in the last few days.
This may be a sign that at a period where bitcoin was losing volume, traders stuck it out in the market, making wise moves to try and earn small profits here and there.
However, when bitcoin started to roll out strongly again, around July last year, people would have considered it as a good investment for the long-term. This rally in the price of bitcoin was also triggered by animosities between China and the US as a trade showdown simmered.
All of a sudden, world economic issues and financial policies were dragged into the limelight, and people scrambled for a new place against falling interest rates and financial doubt.
Bitcoin breached the 200-day moving average at $9,000 during Tuesday's Asian sessions and rallied to a peak of $9,150, pushing its cumulative month-to-date ascent to more than 25 percent.
The crypto's store of value allure could also mean it is attempting to sit alongside the precious metal as a financial cushion depending on what happens globally in the markets.
