Bitcoin's Price Now Tightly Linked with Gold, Historically High Correlation Reached
Bitwise has reported that the 90-day correlation between Bitcoin and gold prices has reached its highest level in nearly six years. This significant correlation is a key observation in the cryptocurrency market, as it indicates a potential shift in investor behavior.
According to Bitwise's analysis, the 90-day correlation coefficient between Bitcoin (BTC) and gold has risen to 0.76, surpassing levels seen since 2017. This means that prices of both assets have moved in tandem, with BTC often following the price movements of gold.
The increased correlation between BTC and gold may be attributed to several factors, including a growing trend among investors to diversify their portfolios by allocating a portion of their assets to cryptocurrencies. As the global economy continues to navigate uncertainty, some investors are turning to alternative stores of value like gold and Bitcoin.