Bitcoin Correlation with Gold Hits Six-Year High
Bitwise, a well-known cryptocurrency research firm, has observed a significant increase in the correlation between Bitcoin and gold. According to André Dragosch, Bitwise's head of research in Europe, the three-month rolling correlation between the two assets has reached its highest level since 2020.
In August, Bitcoin gained 22.4% over the week, while gold rose by about 5%. This increase in correlation is notable, as it suggests that Bitcoin is behaving more like a safe-haven asset, similar to gold.
Dragosch pointed out that this trend is reminiscent of 2020, when massive fiscal and monetary stimulus during the COVID-19 pandemic led to a simultaneous strengthening of the link between Bitcoin and gold.
The correlation between Bitcoin and the US Dollar Index (DXY) has also become significantly negative, indicating that factors putting pressure on the dollar can support both Bitcoin and gold.