Six hours after the nonfarm payrolls report, BTC fell 0.45%, while gold token XAUT rose 0.13%. If you held both crypto and gold, how much loss did that cushion?
It cushioned the loss only partially, and the main difference came from having a lower BTC allocation. At 21:30 on November 6, the U.S. reported 165,000 new nonfarm jobs in October. After the employment data was released, the two asset classes did not move in the same direction.
For illustration, assuming equal amounts invested at the time of the announcement, no leverage, and no rebalancing along the way: by 03:30 the following day, the portfolio was down about 0.16% on paper; XAUT's rise contributed only about 0.07 percentage points. This does not mean gold earned enough to offset BTC's decline, nor does it reflect the profit or loss in your actual account. In the six hours before that, both assets had risen.
Holding both assets preserves exposure to opportunities in each, while leaving you exposed to the risk of the portfolio falling. Switching to cash means less exposure to the corresponding price swings, but also less participation in any subsequent gains. To judge whether this cushion is enough, recalculate using the weights of your own starting positions. If both assets fall together next time, this inverse-movement cushion will no longer apply.
The figures above are based on the opening and closing USDT spot prices, exclude fees, and do not represent a long-term hedging ratio. Gold tokens also carry separate issuance and redemption risks.
This content participates in Binance Square's content mining program. The author may receive platform commissions and engagement rewards.
Sources: U.S. Bureau of Labor Statistics, Binance. Not investment advice.
It cushioned the loss only partially, and the main difference came from having a lower BTC allocation. At 21:30 on November 6, the U.S. reported 165,000 new nonfarm jobs in October. After the employment data was released, the two asset classes did not move in the same direction.
For illustration, assuming equal amounts invested at the time of the announcement, no leverage, and no rebalancing along the way: by 03:30 the following day, the portfolio was down about 0.16% on paper; XAUT's rise contributed only about 0.07 percentage points. This does not mean gold earned enough to offset BTC's decline, nor does it reflect the profit or loss in your actual account. In the six hours before that, both assets had risen.
Holding both assets preserves exposure to opportunities in each, while leaving you exposed to the risk of the portfolio falling. Switching to cash means less exposure to the corresponding price swings, but also less participation in any subsequent gains. To judge whether this cushion is enough, recalculate using the weights of your own starting positions. If both assets fall together next time, this inverse-movement cushion will no longer apply.
The figures above are based on the opening and closing USDT spot prices, exclude fees, and do not represent a long-term hedging ratio. Gold tokens also carry separate issuance and redemption risks.
This content participates in Binance Square's content mining program. The author may receive platform commissions and engagement rewards.
Sources: U.S. Bureau of Labor Statistics, Binance. Not investment advice.
