Bitcoin and Gold Trade Like Sisters Amidst Macro Stress

Bitcoin and gold have been trading more similarly in recent times than at any point since 2020. Their correlation has climbed to about 0.55, the highest in nearly six years.

However, the current bout of macro stress has produced a striking divergence between the two assets. Gold plunged from nearly $4,700 on Aug. 25 to as low as $4,342 on Sept. 1, while Bitcoin held around $77,000 before rebounding above $80,000.

Bitcoin's volatility has decreased significantly compared to gold's, making it only 1.43 times as volatile as the precious metal. Adam Livingston, a Bitcoin analyst, noted that this is an unusual convergence, with gold becoming more volatile and dominating the volatility gap once held by Bitcoin.