It might come as a surprise, but Bitcoin(BTC 0.36%) could finally be fulfilling its potential as a store of value. Since its creation, many have struggled to categorize exactly what Bitcoin is and what purpose it serves. The digital currency has been viewed by some as a viable method of payment, a hedge against inflation, an alternative to fiat currencies, and even digital gold.

While it might actually be an amalgam of all these, now more so than ever, it looks like Bitcoin is acting like a traditional safe-haven asset.

Although gold is touted as the premier safe haven asset in the face of economic uncertainty, the prices of Bitcoin and gold are actually at some of their highest levels of correlation today and could be a sign that the narrative around Bitcoin might be changing.

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Although Bitcoin's main purpose remains slightly ambiguous, it has performed surprisingly well in the last month as turmoil swept through the banking industry in the U.S. and Europe. Since banks such as Silicon Valley Bank and Credit Suisse (CS -0.45%) toppled in early March, Bitcoin is up more than 25%.

In similar fashion, when news broke of the banking failures the price of gold skyrocketed as well. Gold has risen nearly 10% since March, and is at an all-time high of more than $2,000 an ounce.

Yet, while Bitcoin's price isn't near the all-time highs that gold is, both have traded in a surprisingly similar fashion. Today, the correlation coefficient between the two is about 0.94. Consider that the scale ranges from 1 (perfect correlation and moving in lockstep) to -1 (negative correlation and moving in opposition). There has only been one other time in history that the two have traded at such high levels, and that was back in 2020.

With Bitcoin having long been criticized for its volatility and lack of intrinsic value, this high level of correlation is a significant milestone for the cryptocurrency. During much of the past year, it moved more in line with the stock market, and specifically tech stocks. But now that seems to be changing.

It might be a stretch, but perhaps this could mark the beginning of Bitcoin's legitimization as a viable safe haven in the face of economic turbulence.

One of the key reasons Bitcoin is proving to be a legitimate store of value is its scarcity. Unlike traditional currencies, which can be printed at will by central banks, the supply of bitcoins is strictly limited. There will only ever be 21 million tokens in circulation, which means that its value is unlikely to be eroded by inflation in the same way that fiat currencies can.

Furthermore, its decentralized nature means that it is not subject to the same kind of political or economic pressures that can affect traditional currencies. Although central banks can be subject to political pressures, Bitcoin operates outside of this system entirely. This gives it an independence and security that traditional currencies simply cannot match.

More people will likely come to this realization, although it might only come if additional economic pressures cause other institutions to fall. Should this be the case, it would provide a compelling argument to have some exposure to Bitcoin.

With its price still well off its all-time high, buying today seems as alluring. Simply put, Bitcoin's potentially lucrative future seems to outweigh the risk that is often associated with cryptocurrencies.

RJ Fulton has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

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One Metric That Shows Bitcoin Is Becoming a Store of Value - The Motley Fool