Bitcoin Correlation with Gold Signals Start of Largest Bull Market

The price of Bitcoin (BTC) surged by 24% in the week of August 22, leaving many to wonder if this marks the start of a new bull market. According to Benson Sun, a former partner at FTX, this could be the largest bull market in BTC history.

Sun notes that during this time, gold rose by 5.6%, while the Nasdaq fell by 2.1%. This pattern is different from what we've seen in recent years, where BTC typically moves with the US stock market.

The correlation between BTC and gold has been increasing since May, reaching a high of 0.636, close to its historical peak. In contrast, the correlation between BTC and the Nasdaq has been decreasing, dropping to a low of 0.13 before rebounding to 0.22.