BTC Correlation with Gold Hits 3-Year Low

Bitcoin (BTC) has seen its correlation with gold hit a three-year low of 0.9, according to data shared by analyst Wise Crypto on March 24. The BTC-to-gold ratio has fallen around 70% from its prior high, while Bitcoin itself has stabilized.

The correlation breakdown appears to be a positive sign for Bitcoin, as it has historically preceded major recoveries in the asset. In past instances, similar correlation drops have appeared just as Bitcoin stopped falling and began to rebound.

Whale accumulation has also increased, suggesting larger holders are building positions at current levels. 'Add in macro + geopolitical resilience, and the case builds,' Wise Crypto wrote. 'Bitcoin may have already bottomed.'

The geopolitical context has been visible in recent price action. BTC gained 7% following the start of the U.S.-Iran conflict on February 28, while gold fell 2% and the Nasdaq 100 slipped.

Gold, meanwhile, has dropped more than 20% from its all-time high near $5,600 recorded in January. Last week marked its worst performance since September 2011.