Bitcoin Correlation with Gold Hits Record High, Trading More Like Monetary Asset

Bitcoin's (BTC) correlation with gold has reached an all-time high, according to analyst Adam Livingston. The 120-day correlation between BTC and gold hit the 99.5th percentile of all readings since 2020, surpassing its link to the QQQ by 0.19.

The strong correlation between Bitcoin and gold, combined with low volatility, indicates a shift in the asset's macro profile. Livingston describes it as trading more like a monetary asset with continued risk-on exposure.

This change is significant because for most of the time after 2020, Bitcoin acted like a high-beta technology stock. Its median correlation was nearly 0.4 with QQQ and just 0.11 against gold.