Can Ethereum Again Serve as a Hedge Against Stocks and Gold Like It Did in Dec 217/2018

Ethereum is holding the second rank among the top leading digital currencies while Bitcoin is the leading digital asset. Both of these crypto assets are dominating the crypto market. However, Ethereum is sometimes compared with Bitcoin.

Being the leading digital asset, Bitcoin is considered as a safe haven asset. It is the topic of discussion in the crypto market that Bitcoin is going to become a global hedge. Well if we see the current position of the leading coin in the market, it might be possible. Bitcoin is trading above the $10,000 mark.

Though all the eyes are on the leading digital asset meanwhile, Ethereum also gets the attention of the market. It is expected that Ethereum might serve as a Hedge against stocks and gold as it has done this previously a while ago.

Ethereum was a hedge against stocks and gold in Dec 2017/18

San Jose State University has conducted research in order to examine on intraday basis Ether which is the cryptocurrency based on the Ethereum platform. This study has been published recently. According to this study, Ethereum has been found to be a hedge against Stocks and Gold in December 2017/2018.

This study further pointed out that with respect to the currency, Ethereum acted as a “diversifier on an intraday basis for the US Dollar” at that time. According to this research study:

“Ethereum can serve as an intraday hedge against the US stock market and against gold. Also, Ethereum may serve as an intraday safe haven against gold markets.”

The period that this academic research study has analyzed had high speculation in the price action. This study aimed to dig out more about the relationship between Ethereum and other crypto assets.

So, it is for sure that it acted as a hedge against the US stock market and against gold at that time. Now, it is a challenging work for Ethereum to repeat the same work this year.