Bitcoin-Gold Correlation Drops Below 0.86 Amid Shift to Defensive Assets
The correlation between Bitcoin and gold has dropped below 0.86, marking a significant shift in market dynamics. According to Woofun AI, this synchronization was at its highest since the second quarter of 2020, with major investors viewing both assets as core stores of value.
The divergence in market performance further confirms the shift in capital flows, with gold prices remaining close to their all-time high and Bitcoin firmly above $95,000. The cumulative net inflow into spot ETFs in August reached $2.4 billion, underscoring the resilience of this asset combination.
However, some macroeconomic strategists are cautious about the sustainability of this strong correlation. Historical experience suggests that once the focus of derivatives trading returns, such synchronization often swiftly reverses. The average daily trading volume of Bitcoin futures contracts at CME.US was about $4.8 billion in late August.